Financial services are economic services that involve finance and the management of assets. They include banking, investment management, capital markets and insurance. These services are critical for the operation of any economy. However, there are many controversies regarding the influence of these services on domestic and foreign politics, as well as their impact on economic development.
The largest and most obvious category of financial services are banks. These institutions primarily serve as middlemen between savers and borrowers. They collect funds from depositors and lend them to individuals who need money for a variety of purposes, such as starting a business or purchasing a home. In addition to this core service, banks also offer a number of ancillary products, such as checking and savings accounts, credit cards and payment systems.
Other members of the financial services industry include investment agencies and stock market brokers, which are non-banking financial institutions that provide intermediary services to investors. These firms can buy and sell securities on behalf of clients, as well as provide advice on investing strategies. They can also act as custodians for assets, which involves storing and managing valuables.
Regulatory bodies are another key part of the financial services industry. These independent agencies are tasked with overseeing different financial institutions and ensuring that they operate fairly and transparently. Examples of these governmental agencies include the Financial Industry Regulatory Authority (FINRA) and the Office of the Comptroller of the Currency.
There are a number of other sub-sectors within the financial services industry as well, including:
Insurance services – These companies help people protect themselves from unforeseen events. They can provide coverage against death or disability, as well as cover expenses related to a loss of income due to job loss or other circumstances.
Investment banking services – These firms assist companies with mergers and acquisitions, as well as providing advisory and research services. They can also help clients raise capital by underwriting debt and equity offerings.
Private banking services – These firms offer exclusive banking services to high-net worth individuals. This may include advising them on investment strategies, as well as offering other ancillary services like concierge care.
The career prospects for professionals in the financial services industry are excellent. With new tools and services being introduced to the field on a regular basis, there is always room for advancement and growth. In addition to this, many financial services businesses place a heavy emphasis on employee training and development, as they know that their employees are the key to their success. With this in mind, it is no wonder that the financial services sector has become one of the most desirable careers available today.