Financial services is a broad industry that encompasses a wide variety of businesses that deal with money. It includes banks, credit unions, insurance companies, accountancy firms, and more.
This industry enables governments to meet both revenue and capital expenditure by raising finance from the money market. It also helps people invest their savings for future use, thereby contributing to economic growth.
According to the International Monetary Fund, financial services include a variety of different sectors that manage and transfer funds between customers and providers. For example, banks provide banking services, which include holding accounts and helping people qualify for loans to buy things like cars or homes. They earn their revenue through fees, commissions, and other methods.
Banks also offer other financial services, including investment management, insurance, and the redistribution of risk. This includes services that make it easier for savers to access investments, such as mutual funds and stocks.
The financial services sector is made up of thousands of depository institutions, insurance companies, and other lenders that provide credit and financing to individuals and businesses. They use technology to modernize their operations and enable digital workflows to boost performance.
Business Process Management (BPM) and automation are crucial tools for improving financial services operations. They help organizations automate repetitive tasks and monitor delays to prevent any issues. They can also improve customer retention by allowing people to see their financial data clearly and quickly.
BPM enables banks to connect all their front, middle, and back offices. It unites employee, IT, and customer teams in a single platform to accelerate business performance. It can also enable policy servicing and support standardized payment operations for third-party banks.
Regulatory bodies oversee the financial services industry to uphold transparency and ensure that people receive fair treatment. Two key regulators are the Financial Industry Regulatory Authority and the Office of the Comptroller of the Currency.
There are many different career paths in financial services, depending on your goals and ambitions. You may be looking to work in a highly competitive environment of institutional dealing or build relationships with clients or you might prefer a role that supports other professionals.
For most jobs, a degree is not required. However, you might want to consider taking classes or completing a certificate program to enhance your skills and prepare for a specific job position.
One of the best things about a career in financial services is that it can take you anywhere around the world. You can find positions in major cities and even in rural areas.
You can work for banks, large corporations, and small community banks or nonprofits. In either case, you can expect an intense and challenging career that involves a lot of responsibility and training.
Having good interpersonal skills is essential for success in the finance industry. You’ll need to be able to effectively communicate with your co-workers, customers, and clients.
In addition, you’ll need to be able to solve problems quickly and efficiently. A finance career is a high-pressure environment that can lead to burnout, especially if you aren’t careful about how much work you do and what you put on your plate.