The Financial Services Industry

Financial services

You might think of banks, mortgage lenders and credit card companies as three different entities, but the financial services industry encompasses much more than that. The sector includes central banks, depository organizations (including savings institutions and building societies), credit unions, insurance and diversified financial firms as well as providers of critical financial utilities.

Financial services provide many benefits to consumers, such as facilitating savings, investments, hiring and other economic activities. They also help in minimizing the risks for producers by providing various types of insurance against the fluctuating business conditions and natural calamities. These firms encourage investment in the primary, secondary and tertiary sectors of the economy to maintain balanced growth in all the segments.

A career in the financial services industry can be very rewarding and lucrative. When surveyed, professionals in the field report very high job satisfaction levels. With new tools being introduced to the industry seemingly every day, there are always opportunities for professional growth and advancement within the financial services sector.

In addition to banks, brokerages and credit card companies, the finance industry also includes investment management, treasury management, mutual funds and factoring. The latter enables small businesses to sell their goods and services to larger buyers at better terms by lending them the money they need in order to meet purchase orders. There are even private equity funds, which offer venture capital to companies in exchange for a stake in the company and the right to participate in future profit sharing.

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