The financial services sector encompasses thousands of depository institutions, providers of investment products, insurance companies and other credit and financing organizations. It also includes the critical financial utilities that support these functions, such as stock exchanges and clearing houses, derivative and commodity exchanges, and payment systems.
The most common financial services include banking, investment advising, and insurance underwriting. Each of these sectors serves a different group of consumers and businesses, so there is plenty of opportunity to find a career in one that fits your needs.
Banking – Retail banking involves handling individual money, such as checking and savings accounts, as well as lending it to other people. About 10% of the money deposited with banks must stay on hand as a reserve, while the other 90% is available for loans to people.
Investment advising – This branch of the financial industry helps individuals and businesses make informed decisions about their finances, including purchasing stock and real estate. They offer a variety of services, including investment due diligence and M&A counseling, as well as valuation and risk consulting.
Insurance underwriting – The insurance industry is a large part of the financial services sector, and there are many different types of policies to choose from. Whether you need life, health, or auto insurance, an insurance agent can help you find the right coverage for your needs.
The financial services sector is a vital part of the economy, as it provides a safe and reliable means for businesses to operate, and for people to save. When the financial services sector is healthy, people can more easily afford to purchase goods and services, allowing for faster economic growth.