Jobs in Financial Services
When people think of jobs in financial services, they usually think of banks, brokers and mortgage lenders. However, these are only three parts of a much larger industry that deals with money management and the redistribution of risk. It also involves the exchange of goods and services to manage the flow of capital between consumers, businesses and other entities. It can be difficult to get started in the field, but once you’ve established a foothold, you can grow your career in various ways, such as becoming an investment banker, securities trader or financial advisor.
To provide a comprehensive definition of financial services, it’s important to break the sector down into subsectors and segments. The first is depository services, which includes accepting deposits in the form of checks and electronic funds transfers, as well as providing checking accounts, savings accounts and credit cards. Other depository financial services include extending lending to individuals and businesses by way of personal loans, home mortgages and business lines of credit. These companies typically earn revenue by charging fees, commissions and interest on loans.
Another part of the financial services industry is asset management, which specializes in managing pensions, insurance assets and hedge funds. These companies may also offer brokerage services, market making on trading exchanges and issue new stock or debt securities to raise capital for businesses. They earn income from management fees, trading commissions and the spread between what they pay depositors and what they receive from borrowers.
Financial services companies play a vital role in the economy by helping individuals with saving and spending. A strong financial sector leads to economic prosperity, and consumers can then make purchases with confidence. However, if this sector begins to falter, it can cause a recession or even depression.
The government regulates most sectors of the financial services industry to protect consumers. In some cases, it may even require a company to obtain licenses or comply with certain regulations before providing specific financial services. For instance, a lender must be licensed to provide home mortgages. This is done to ensure that the company has enough capital to cover potential losses, such as those resulting from foreclosures.
Although there are thousands of job titles in the financial services industry, not all of them will help you reach your career goals. According to Duitch, the best way to find a position in this sector is to start with an entry-level role that allows you to develop skills on the job. This will give you a better chance of moving up in the organization, instead of starting at the top and working your way down. In addition, he says to make sure you know what your ideal career is before applying for a role. Then you can narrow down the options based on your qualifications and interests. You can then apply for the role that best fits your goals. If you need help finding a job in this sector, contact Pocketbook Agency today.