When people think about financial services, they often think about mortgage lenders, stock brokers and banks. But these are just a few of the many sectors that make up this broad industry. The financial services industry also encompasses debt collection agencies, investment firms, insurance companies and more. It provides individuals, small businesses, large corporations and even governments with the money they need to function.
Financial services are a vital part of the economy. They help individuals buy homes and cars, save for retirement or college and protect their property from damage or theft. Without the financial services sector, many people would have trouble obtaining loans for big purchases. It’s the financial services industry that allows for the free flow of capital and market liquidity, and it’s this that drives economic growth.
The financial services industry is a diverse field that offers a wide range of career opportunities. However, the sector can be competitive and high-pressure, especially when it comes to meeting sales quotas or satisfying client needs. Employees in this industry may also need to spend a significant amount of time on continuing education in order to maintain the proper licenses and credentials for their job.
Some of the most common areas within financial services include banking, securities trading, asset management and insurance. Banking services include deposit accounts, credit cards, loan origination and other traditional banking functions. Securities trading is a service that helps investors purchase and sell shares of stocks, bonds, mutual funds and other securities. Asset management is a service that helps individuals manage their wealth through investments in real estate, debt, commodities, stock and other assets.
Debt resolution is a consumer service that helps consumers who have difficulty paying their bills and meet their payment obligations. This can include managing unsecured and secured debt, as well as negotiating with creditors to create affordable payment plans. Insurance is a service that helps individuals and businesses protect themselves from risks like property damage, theft, health issues and death. This can be in the form of life, auto and home insurance policies.
The most prominent sector within the financial services industry is lending, which involves borrowers getting access to money by taking out loans. This can be for anything from a car or a mortgage to a new computer or an expensive vacation. Lending services are provided by a wide variety of businesses, from small, privately owned community banks to huge Wall Street institutions. This type of financial service is typically provided in exchange for interest or a percentage of the value of the loaned sum. This is a key source of revenue for lenders. In addition, some lenders offer credit card rewards programs to attract customers and increase retention rates. This can be a lucrative additional source of income for both the lender and its employees.