Financial services are a vital part of every economy. They are a large industry that includes banks, credit-card companies, insurance companies, investment funds, accountancy firms, consumer finance companies and stock brokerages. In addition, some governments operate financial-services enterprises. The sector is highly interconnected, and companies in one branch often offer products and services through other branches of the same company or through affiliates. Financial-services companies tend to cluster in local, regional and international financial centers.
The 2008 global financial crisis placed the industry under scrutiny, and many businesses have worked to boost trust and create socially responsible products. However, the industry still struggles to align its goals with its purpose – empowering people to build their own futures. In a recent publication, the ICAEW Chartered Accountants’ Financial Services Faculty explores ways that the industry and its boards can better foster a culture of purpose.
A career in the financial services industry can be extremely rewarding. The salaries for positions in this field are generally much higher than for jobs in other industries, and there is a lot of room to grow within your role. Additionally, the flexibility offered by most jobs in this field makes it easy to work from home or on-the-go.
However, it is important to note that many positions in this sector are quite demanding. It is not uncommon for professionals to work 16-20 hours per day, and a good deal of stress can be associated with the job. Additionally, many of these positions require a high level of education and can be very competitive.
The financial services industry is a powerful economic force that influences other industries’ practices, standards and operations. For instance, virtually every business uses banking services to manage their money, and the policies, practices and regulations that financial-services companies adopt will influence how other businesses manage their finances.
Moreover, the financial-services industry is also a major employer in most countries, and it provides a significant percentage of all jobs in the private sector. The industry contributes to the GDP of most developed countries, and it is responsible for a significant portion of the world’s trade.
The industry is regulated on a global scale, and the lines between different types of financial-services firms are blurring. As a result, the market is becoming increasingly complex, and it is becoming more challenging for companies to meet consumer demands while staying profitable. The success of the financial-services industry is dependent on a number of factors, including innovation, risk management and compliance. It is also crucial to have a strong talent pool, as the competition for qualified professionals is fierce.