The financial services industry is an important component of our economy. It promotes saving and investment. This means that consumers have a safety net to protect them from economic downturns and natural disasters. Financial services also help producers raise capital.
Insurance is another type of financial service. Insurance companies cover risks for producers. Some of these include real estate, loans, bonds, and commodities. Typically, insurance companies are responsible for minimizing risks and ensuring payments to policy holders.
Financial services are governed by a variety of government laws. These are aimed at ensuring that companies are doing everything possible to treat their customers fairly. There are also a number of independent regulatory agencies.
The industry has undergone many changes, as it has been affected by globalization, deregulation, and the 2008 financial meltdown. Since then, a number of large and small financial organizations have been forced to merge. This has facilitated economies of scale.
One of the largest U.S. banks is Wells Fargo. Its market capitalization makes it one of the biggest corporations in the world.
In the United States, the stock market rebounded from its 2008 lows. While the financial sector is still affected by the market collapse, it appears to be headed in the right direction.
A key factor to consider when deciding on a career path in the financial services industry is the level of responsibility. Taking on more responsibility can lead to higher salaries and the opportunity to develop expertise.