The financial services industry includes thousands of depository institutions, providers of investment products, insurance companies, credit and financing organizations, and the critical financial market utilities that support them. It’s a broad grouping that covers everything from mortgages and consumer finance to investments and banking technology. And there are many different career paths within the financial services sector, from entry-level teller positions to roles that lead to careers as advisors or portfolio managers.
As a result, it’s difficult to know where to start when exploring a career in the financial services sector. So we’ve put together a brief guide to help you understand what it is and where to begin when it comes to making your own path within the sector.
Consumer finance – This includes things like credit card companies, mortgage lenders, personal loan and student loan services, and payment firms such as American Express. Consumer finance companies use data to anticipate when their clients will need certain products or services and make a pitch at just the right time. For example, a company might notice that their customers are getting married or buying a home and pitch them with a mortgage offer just before that event occurs.
Financial services companies that work with investors or businesses to underwrite debt and equity for mergers and acquisitions fall into this category as well. They may also provide advisory services such as restructuring, debt restructuring and restructuring, and financial consulting. This category of financial services is dominated by large private equity firms and hedge funds.
The final major area of financial services is investment management. This entails managing assets and creating investment strategies for individuals and corporations. Investment management companies are typically private and run by highly experienced professionals. These firms are dependant on computer technology to allow them to analyze markets and create their investment strategies. They also utilize it to enable clients to access their accounts online at any time and manage their finances from anywhere.
All of these sectors are interconnected and form the backbone of the financial services industry as we know it. It’s important to understand the differences between them, however, in order to find a position that is the best fit for you.
In general, jobs in the financial services sector tend to be higher paying than many other industries. In some cases, salaries can even reach six figures for the highest-level executives. However, the pay scale can vary widely depending on the specific role and employer.
Those interested in a career in the financial services industry should be prepared to work hard. This is because it’s a competitive field that requires people who are smart, quick-thinking and team players. In addition, it’s not uncommon for financial services workers to be stressed and burnt out. This is due to the fact that most of their hours are spent at work and they often have to be available to meet client needs around the clock. It’s therefore essential to have a strong network and a good work-life balance.