Financial services is a broad sector that includes everything from bankers and stockbrokers to credit unions and nonprofits. It’s also important to distinguish between financial services and financial goods. Financial services are about managing and exchanging money, but financial goods are what actually make money in the economy.
Financial institutions are a crucial part of any economy. They promote saving, investment and the redistribution of risk amongst consumers. This in turn creates more jobs, especially in the primary and secondary sectors of a country’s economy. The tertiary sector of a country is then able to grow, and this is what leads to economic prosperity. However, this is only possible if the financial services sector is robust and efficient.
The pillars of the financial services sector include banking, investing and insurance. These are complemented by critical financial utilities, like payment systems and debt recovery. The sector is regulated by independent bodies that ensure the financial industry operates transparently and with fair practices.
Careers within financial services offer a wide range of options for those with varying skills sets. Many of these roles require specific qualifications, but others are not as demanding. Those who want to work in the finance sector should be prepared for long hours and often high levels of stress. In order to break into the industry, it can be a good idea to have connections in the field. This can help when it comes to finding a job or even landing an internship, and is especially useful for those who are looking to become investment portfolio managers or consultants.