Financial services are the activities that help individuals and companies manage their money. They include a broad range of businesses such as deposit-taking, lending of all types, financial leasing, securities trading and brokerage, asset management, money transfer services, investment banking, insurance and pension fund management. Financial services also include the provision of advisory, intermediation and other auxiliary financial services (e.g. credit reference services, market making and investment research).
A healthy financial sector is key to a country’s economy. It enables people to take out loans for homes, cars and education, helps savers get decent returns on their investments and protects them against unforeseen circumstances through insurance policies. Businesses can grow and expand with the help of a strong financial sector, which in turn provides millions of well-paying jobs.
When this industry is doing well, it boosts consumer confidence and purchasing power. But when it falters, it can drag down an entire economy and lead to a recession. As a result, many people are seeking opportunities to join this sector. But it’s important to remember that not all jobs in financial services pave the way for a successful career. As with most sectors, a strong network is vital for breaking into the field. It’s also a good idea to start with an entry-level job that will let you learn the ropes and build your skillset before advancing to a higher position. This can be especially important in a field where technology is constantly evolving and new tools are introduced.