What are Financial Services? These are services that help people save, invest, and manage their money. They are both tangible and intangible. They help with everything from making deposits to buying and selling derivatives and securities. Financial services can help people and businesses raise money, offer investment advice, and invest funds for clients. The benefits of using financial services are numerous. Read on to learn more. This article will help you decide whether or not this is the career path for you.
Intangible in nature
Intangible products are usually highly people-intensive, such as consulting and hair-dressing. Because these products are intangible, they are susceptible to human discretion, idiosyncrasies, delays, and errors, which can quickly turn customers off. Moreover, intangible products are less likely to meet customer expectations. This means that intangible products require special attention to create customer loyalty. However, there are some ways to improve the quality of intangible products and services.
One of the most important aspects of diversification is the ability to reduce volatility in a portfolio. The chart below shows hypothetical portfolios with varying asset allocations, showing average annual returns from 1926 to 2015, and their best and worst 20-year returns. For example, the most aggressive portfolio had 60 percent domestic stocks, 25 percent international stocks, and 15 percent bonds. It had a maximum return of 136% and a minimum return of minus 20. Such a portfolio is probably too risky for the average investor to manage.
A key aspect of the financial services industry is the liquidity of a company’s assets. Assets that can easily be converted to cash include stocks and bonds. This makes it easier to track and benchmark the liquidity of a company. Companies that have liquid assets are able to meet their obligations more quickly than those that do not. However, some financial services firms must carefully monitor their liquidity levels and adhere to strict policies and regulations to ensure that they remain profitable.
Careers in financial services are plentiful, especially for finance and accounting graduates. This sector has experienced a growth that rivals the late 1990s Y2K for IT professionals. Joint venture State Street HCL Services is adding a number of graduates to its ranks. This firm operates in four locations and is looking for candidates who can work in both the IT and financial services fields. In addition, it is a great place to gain experience and network with seasoned industry veterans.
The current crisis has exposed the need for regulatory reform in financial services, but it has also brought about a change in the landscape. The role of the regulator is to address the flaws in the system and make them stronger. To do so, it must implement regulations consistently and monitor the evolving risks and markets. In a recent speech, BIS general manager Jaime Caruana outlined three key roles for the financial regulator. This article examines each of these roles and what they mean for policymakers and consumers.