Careers in Financial Services
Financial services are the businesses that support the economy and allow individuals to make monetary transactions. This sector includes banks, credit unions, credit-card companies, and insurance agencies. Financial services are essential to a functioning economy, as they provide the means for people to make large purchases and save money for future needs. The financial services sector also helps small businesses get the capital they need to grow. Without a strong financial services industry, the economy could suffer from an economic collapse or recession.
In the United States, the largest financial services companies include investment firms, commercial banks, credit-card firms, and insurance agencies. These firms offer a variety of products and services, including brokerage accounts, deposit accounts, loans, mortgages, and investment advice. In addition, they may underwrite debt or equity for private and public companies looking to expand or take over another company. They may also specialize in structured finance, which involves creating intricate derivative products for high net worth individuals and institutions with more specific investments goals.
A strong financial services industry allows individuals to get the money they need in loans for things like cars, homes, and education. It also gives them the ability to save for down payments, retirement, and other financial goals. It also protects their wealth from risks like job loss or health problems by providing insurance policies and reimbursing them for expenses related to those events.
The sector also provides an important set of tools for the rest of the economy, enabling other industries to raise funds and grow their operations by offering things like factoring, hire purchase finance, and credit cards. Without a robust financial services sector, the overall economy would suffer because other industries would not be able to secure the necessary financing to keep growing.
Careers in the field of financial services can be highly rewarding, but they can also come with a lot of stress. The hours can be long, and work-life balance may be difficult to achieve, especially if you are working in an underserved community. Additionally, the pay can be low compared to other industries.
Despite these drawbacks, many professionals find that a career in financial services is worth the effort, particularly because of the potential to quickly advance. Firms are known to promote from within, and they often invest in ongoing training and development for their employees. This can help you build a solid skill set and gain valuable experience in your field. It can also be easier to get a foot in the door in financial services because entry-level positions are usually considered stepping stones toward higher-level roles. Additionally, these companies are often more interested in aptitude than tenure when promoting new team members. This can be a huge advantage for younger candidates who are hoping to move up the ladder more rapidly.