When people think of financial services, they might imagine stock brokers, mortgage lenders and banks. But the reality is that this sector encompasses much more than that – it includes everything from insurance companies to credit unions and credit-card issuers. It even extends to nonprofits that offer counseling and money management advice. Ultimately, it covers everything that touches money, and it affects every person on earth in some way.
Having access to financial services is vital for all of us, whether we’re looking to buy a new car or pay for our kids’ educations. But with so many options available, the choice can feel overwhelming. If you’re considering a career in this industry, it’s important to understand the different types of roles that exist and how they may impact your future goals.
Financial services provide the infrastructure for economic growth and development. Without them, the economy would not be able to function. They are vital for ensuring that the three primary sectors of the economy — agriculture, industry and services — get enough funding to grow in a balanced way.
They also ensure that businesses can borrow and raise funds quickly to respond to challenges like volatile markets, liquidity shortages and hostile takeovers. They do this by providing capital market services, such as complex deal making, lender negotiations and rapid M&A.
Another essential part of financial services is facilitating the flow of money between the three sectors of the economy, including the transfer of funds from investors to businesses and back again. This enables the production of goods and services to increase and helps create jobs. It’s also a good indicator of the health of an economy. If there’s a lot of activity in the capital market, it suggests that the economy is doing well.
For consumers, financial services help them purchase both essential and luxury goods through credit cards, hire purchase and housing finance companies. They also allow them to save by offering a variety of reinvestment options, such as mutual funds and share saving schemes. This allows them to make investments for the future and improve their standard of living.
The financial services industry has a wide range of careers that can suit almost anyone’s skills and interests. But it’s crucial to find a role that fits your career aspirations and allows you to use your full set of professional skills. The right role can give you a solid foundation for future success in the industry. However, it’s important to understand that not all financial services jobs are created equal – and some can be a dead end for those trying to climb the ladder. Here are four common types of financial services jobs you should avoid if you’re serious about your career in finance.