The financial services industry is the collection of firms that facilitate change in the form of savings into investment and vice versa. The sector includes the banks, credit card companies, insurance agencies and stock brokerage firms. It also encompasses other businesses that deal with money, such as credit unions, credit-card networks and foreign exchange services. The industries that make up the financial services are regulated and monitored by independent agencies to ensure fairness, transparency and equal opportunity.
For example, banks are important in the financial services industry because they collect deposits from people who have saved their money and then lend it to those who need it for various reasons, such as starting a business or buying a home. They use the funds from these depositors and then pay a small percentage back in the form of interest to the depositors. This process makes it easier for people to access capital for large purchases.
Regulatory bodies, like the FINRA and the OFR, are an important part of the financial services industry as they are responsible for overseeing different financial institutions’ operations and upholding transparency. These agencies also make sure that customers are treated fairly and are not being scammed by unethical businesses.
Many people work in the financial services industry and there are plenty of opportunities for advancement. However, it is a competitive field and pay is not as high as some other sectors of the economy. If you want to be successful in this industry, it is important that you are smart, quick-thinking and team player.
