The financial services industry comprises the business sector that deals with money management. It includes credit unions, banks, credit-card companies, insurance firms, consumer-finance companies, stock brokerages, investment funds and individual managers. It also includes debt-resolution services, global payment providers like Visa and Mastercard, credit card machine services and networks, and exchanges that facilitate stock, commodity, and derivative trading.
Financial services are essential for any economy, as they provide the means for individuals and businesses to save money and invest it in productive projects that will result in future income. This is why the tertiary or service sector of any economy contributes more to its gross domestic product (GDP) than the primary and secondary sectors. In addition, the emergence of financial services has helped to improve the overall standard of living of citizens, as it has allowed them to acquire a wide variety of consumer goods through hire purchase or housing finance companies, and to get better employment opportunities by investing in new production companies.
For governments, financial services help them raise short and long-term funds to meet their revenue and capital expenditure needs. The government can do this through the money market, where it issues securities that are purchased by commercial banks using their depositors’ money. Moreover, it can raise long-term funding by selling its debt in the securities market, and even obtain foreign currency through the foreign exchange market.
As a business, financial services are a major source of employment worldwide. The industry employs millions of people in countries with developed economies, and it is a vital part of the global economy as well. It is a highly competitive industry that requires employees to be intelligent, quick-thinking, and good communicators. Those who work in this field are also often highly paid, as they have the opportunity to become high-ranking executives with great benefits.
A career in financial services is a great way to gain a variety of skills that can be useful for many different industries. However, it’s important to understand the pros and cons of working in this industry before making a decision.
For example, the work of a financial services professional can involve a lot of travel. This can be difficult for some people, as it may interfere with their family lives and personal life. In addition, the hours can be very long, and it can be a stressful job.
Another downside of a career in financial services is that it can be difficult to move up the ladder. This is because there are so many different positions, and not all of them offer the chance to grow professionally. For instance, if you want to become a manager, then working as a teller may not be the right choice for you. If you can overcome these challenges, then a career in financial services can be very rewarding. It can be an excellent option if you are ambitious and have the right interpersonal skills. A good education is not always necessary, but it will definitely help you succeed in the field.
