Financial services are the industry that encompasses everything related to money, from credit cards to mortgages to investments. It includes the depository institutions that accept deposits (like banks and credit unions) as well as companies that offer other forms of financial intermediation like investment banking, mortgage brokerage, and even check cashing. It also includes providers of critical financial utilities, such as payment systems and credit-card networks.
The presence of financial services helps in the promotion of domestic and foreign trade by facilitating increased production, employment, income, demand and prices which in turn lead to greater growth in the economy. They also help in resolving the economic problems of backward regions by providing fiscal and monetary benefits to them through loaning funds and extending credit facilities such as factoring and hire purchase finance.
Some of the key players in the financial services industry include credit-card companies, payment systems providers, banks, credit unions, and credit-rating agencies. The industry is regulated by the government and provides a safe haven for savers from the risk of losing their investments. It is a major source of employment in many countries.
While a degree is required for most positions in the financial services industry, you can get started with an entry-level position and learn the ropes on the job. It is also common for employers in this sector to value interpersonal skills and hard work over formal education. However, because this is a high-stress industry, it’s not uncommon for people in financial services to experience burnout.
