What Is Financial Services?

When you think about financial services, you probably envision banks, brokers and mortgage lenders. But the field is actually much bigger than that, encompassing a wide range of businesses, from insurance companies and investment firms to Wall Street and more. It also includes the services that individuals, small businesses, large corporations and nonprofits need to manage their money.

Banks provide depository services, accepting funds from savers and extending credit to borrowers. They also serve as intermediaries between investors and businesses by offering a variety of products like checking and savings accounts, credit cards, loans and mortgages. They evaluate a borrower’s creditworthiness and determine interest rates to help people and organizations make sound financial decisions.

Another big area of finance is insurance, which helps protect against unforeseen events. People purchase health, car and homeowners’ insurance policies to cover expenses when the unexpected happens. These policies are part of the financial service industry, which also includes agencies that sell them and the underwriters who create and review them.

The next category of financial services are brokerage and investment firms, which help investors buy and sell securities, such as stocks, bonds and mutual funds. They also offer other services, such as research, asset management and trading. These businesses are usually for-profit ventures, though they can also include nonprofits that offer counseling or money management advice.

Investment services can also encompass things like wealth management, which involves helping high-net worth individuals with more intricate financial needs. These services can include managing assets, advising on mergers and acquisitions, and offering structured finance.

Other financial services include insurance-related activities, such as reinsurance, insurance agency and brokerage services, underwriting and risk assessment and claims settlement. The sector also includes the services that companies provide to their employees, such as payroll processing and benefits administration.

Many of the professionals in the financial services industry spend a lot of time training, and they are often encouraged to continue their education. This is because new tools are introduced to the industry almost daily, and they must keep their skillset up to date.

A career in financial services offers a good salary and the potential for rapid advancement. However, the sector can be very competitive and requires a strong work ethic. The good news is that many employers offer competitive benefits and support their employees’ growth in the field.

It’s important to consider your goals when deciding whether or not to pursue a career in the financial services industry. While the sector is massive, not all jobs in it will be the right fit for you. Duitch recommends that you find a company that invests in its employees, and makes sure the job will pave the way to where you want to be professionally. Contact Phyton Talent Advisors today to see what positions are available in the financial services industry. We match top professionals with their ideal companies.