Oftentimes when you think of the financial industry, your mind goes to banks, stockbrokers and mortgage lenders. But the financial services sector is much more expansive than those three industries and encompasses everything that has to do with money. Financial services affect everyone, including individuals, small businesses, large corporations, nonprofits and the government.
When you work in the financial services industry, you’ll be helping people manage their wealth, which includes their investments, property and other assets. You’ll also be working to protect people and their assets against financial risks such as illness, death, theft and natural disasters.
This is one of the most important sectors in any country and as a result, there are a variety of different jobs available within this field. In the UK, there are around 2 million financial services workers, with the majority of these working in London. If you’re looking for a career change, or want to work abroad, it’s worth exploring what positions are on offer in this industry.
The main subsectors of financial services are banking, investment, insurance and the redistribution of risk. Banks are places where people save their money and then lend it out to other people who need the funds, like those buying a home or car. In order to make a profit, the bank will charge interest on the amount that is borrowed. Other institutions that are part of the financial services industry include credit unions, building societies and mortgage banks.
Another type of financial service is investing and advising, which are used by individuals and organizations to grow their assets. This is done through savings accounts, investments in property or stock, and borrowing. Advisors will help with this by assessing the client’s situation and providing advice on how best to use their money.
Insurance is an extremely important aspect of the financial services industry and offers protection for life, health, property and even legal liability. This is provided by a range of companies that include brokers, agents and reinsurers.
Other parts of the financial services industry include asset management, credit rating agencies and global payment systems and networks. This sector also includes accountants and tax filing services, as well as debt resolution firms. It’s also worth mentioning that the growth of artificial intelligence (AI) in financial services is rapidly increasing, which is set to revolutionize how the industry works. So, if you’re interested in getting involved with this exciting new technology, it’s definitely worth researching the available opportunities.