Financial services are a vital part of the economy. They help people make money, save money and secure products. When a financial system fails, consumers stop spending and the economy may suffer.
There are a variety of career options available in the financial services industry. These range from investment management to banking. A degree is not always required. Rather, many jobs involve a mix of hard and soft skills.
Investment banks focus on helping businesses raise funds. Their services include mergers and acquisitions, restructuring and capital raising. Other types of investment firms include venture capital providers.
Another important subsector of the financial services industry is insurance. Insurance companies reduce risks for both producers and consumers. It offers various kinds of protection against property damage, liability and death.
Financial services can also include notary and appraisal services. Some community-based nonprofit organizations provide financial counseling and money-management advice.
Financial institutions and government regulators have a wide range of regulations that govern how they operate. They can impose licenses, know-your-customer policies, and incentives. In turn, these can drive cost reduction and innovation.
Governments can set policies and regulations that encourage the development of the financial sector. As the economy grows, the demand for products and services increases. This helps companies to increase production.
Financial services can be offered through a bank, a stock exchange, a clearing house, and a commodity market. Some banks may also offer a brokerage division.
Other industries that provide financial services include insurance, tax filing, mortgage inspection, and appraisal. The insurance agent serves as an intermediary between the insured and the insurer.