Financial services encompasses a wide range of activities, including banking and insurance. It is a broad sector that impacts everyone in big and small ways. You probably think of bankers and hedge fund managers when you hear the term, but it also includes small community banks and nonprofits.
The financial services industry is the largest in the world, with over 24,000 depository institutions, providers of investment products, insurance companies and other credit and financing organizations. The sector also provides critical financial utilities such as payments, foreign exchange, and interest rate hedging.
A major goal of the industry is to help people access affordable and convenient services that can improve their financial wellbeing. This includes fostering a healthy attitude towards money, building financial resilience in the face of economic stresses and helping people to manage debts.
There are many different types of jobs within the financial services sector, and you can choose a career that fits your interests and skill set best. Some careers in the sector are more specialized than others, so make sure to choose an area of expertise that appeals to you.
Business process management, or BPM, is a field that helps firms streamline processes and remove repetitive tasks. It can reduce costs, eliminate mistakes, and allow workers to focus on delivering exceptional customer service.
For example, bankers might use a BPM tool to send customers notifications of new transactions or a change in their account balances. With this information at their fingertips, they can ensure that each customer’s accounts are protected and that the financial process is efficient.
Another way that BPM helps the financial services industry is by automating business processes, such as sending reminders to customers when they are due for deposits or loans. This helps to avoid delays in service and improves retention rates.
The Financial services sector is a large and growing industry that is highly dependent on technology. This makes it a great place for job seekers to build their IT skills and find a role that matches them well.
Banking – The main branch of the financial services sector, banks serve individual consumers as well as commercial corporations. They provide checking, savings, and loan accounts to their customers as well as some investment services.
Asset management – The next major branch of the financial services sector is asset management. It involves handling pensions, insurance assets, mutual funds and other investment instruments.
Insurance – The third major branch of the financial services sector is insurance. These businesses help individuals and business owners to secure their financial futures with insurance products like life and health insurance, reinsurance, and asset protection.
The financial services sector is one of the most important parts of our economy, providing an array of products and services that enable everyone to better manage their money. Its services help people to save, borrow, invest, and weather financial shocks. It also enhances the economy and promotes growth by ensuring a fair distribution of the economic pie.