Financial services are an essential part of the economy, as they allow people to save money and borrow it. Without them, people would be less likely to buy goods and services.
The first sector is banks, which are the places where people keep their money and loans it out to those who need it. Then there are asset management firms that handle pensions, insurance assets and hedge funds.
There are also private equity funds and venture capital providers. These supply investment capital to companies in exchange for ownership stakes or profit participation.
These companies are often run by wealthy individuals who invest their own money or a portion of it in small businesses and startups. They can be very influential in securing big deals.
Another important subsector is insurance, which helps people protect themselves against the risk of death or illness. It also protects them against property damage and liability.
A third area of the finance industry is regulatory agencies, which oversee the operations of different financial institutions and ensure they uphold transparency and treat their customers fairly. Some of these organizations include the Financial Industry Regulatory Authority (FINRA) and the Office of the Comptroller of the Currency.
The financial services industry is an extremely broad and diverse one, offering a wide range of career opportunities. It can be difficult to know which type of job is right for you, but it’s always helpful to do your research before making a decision.