Careers in the Financial Services Industry
The financial services industry is a huge and diverse one. It includes a wide range of products and services, all of which revolve around money management. Financial services can be broadly divided into four different categories: Banking, investments, credit and insurance. Each of these comes with its own unique sets of functions and requirements. Choosing the right one to work in can be a challenge, but it is important to understand how each sector works so that you can make the best choice for your career.
Historically, each segment of the financial services industry stuck to its own niche. For example, banks provided a place to hold checking and savings accounts, while loan associations offered mortgages and auto loans. But starting in the 1970s, consumers began to move away from big banks and seek out more options. As a result, companies started offering a wider variety of financial services and merged to form giant conglomerates.
A healthy financial services sector is critical to a country’s economy. It allows individuals to obtain the funds they need for purchases, such as cars, homes and education. It also helps them save for future expenses, such as retirement and health care, through investment accounts. It safeguards personal property and health through insurance, and it makes businesses more successful by allowing them to grow and expand with the help of debt financing.
When a financial services sector begins to struggle, it can have a ripple effect across the entire economy. Banks may start to impose stricter requirements, which reduces the amount of available capital. Consumers may stop spending, and businesses begin to close. This can lead to a recession, which in turn leads to higher unemployment. Finally, central banks often lower interest rates to stimulate the economy and offset the effects of a weak financial services sector.
The presence of financial services enables the financial institutions to raise and disburse funds to other institutions for economic dynamism. Mutual funds, factoring, credit cards and hire purchase finance are the examples of such services. This enables the other institutions to increase their productivity and thus create employment opportunities in the economy.
Careers in the financial services industry are typically highly competitive and rewarding. This is because the pay for those in this field is very good, and advancement opportunities are based on merit. Additionally, many firms in the industry are heavily invested in their employees, often providing training opportunities and encouraging them to continue their education. As a result, it is not uncommon to see professionals in this field moving up quickly in their careers. This makes it a great choice for those who are interested in a challenging and exciting career path. Pocketbook Agency explains the different types of jobs in this field and gives tips for getting your foot in the door. A strong network is also key, as this is usually necessary to land a job in the finance industry. Then it is just a matter of working hard to advance within the company.