Financial services are the activities that help people save and invest their money, buy and sell goods and services, and protect their assets. The sector includes banks, credit unions, credit-card companies, mortgage lenders and insurance firms. It also encompasses global payment services (like Visa and MasterCard) and debt resolution services.
The financial services industry is a key driver of economic growth and a vital part of the global economy. The sector provides jobs to millions of people, and helps businesses grow and expand. A strong financial services sector can improve a nation’s and world’s overall economic health by creating more jobs, raising standards of living, and enhancing productivity.
To do this, the financial services industry channels cash from savers to borrowers and redistributes risk. Banks, for example, take the money saved in their deposit accounts and lend it out to individuals and businesses who need capital. They do this by assessing the creditworthiness of borrowers and setting interest rates accordingly. Insurance companies, meanwhile, add value for investors by pooling money from many borrowers and spreading the risk among a large number of policy holders.
The financial services industry is a broad field that encompasses many different jobs and careers. A career in this industry can be exciting, challenging and rewarding. The right fit for you depends on your skills and interests, as well as the type of job you’re looking for. Having the right network can also make it easier to get a job in this field.