When you think of the financial services industry, you may immediately picture banks, stock brokers and mortgage lenders. While these are important sectors, financial services include many other entities as well. The financial services industry encompasses everything that touches money, from personal finance advice to investment banking. It affects individuals, small businesses, large corporations and even the government.
To understand how broad this industry is, it’s helpful to consider the difference between a financial good and a financial service. A financial good is something tangible that lasts, like a home or an insurance policy. A financial service is the process of acquiring that good. For example, the work that goes into getting a mortgage is a financial service, but not the actual loan itself.
The financial services industry includes thousands of depository institutions, providers of investment products, insurance companies and other credit and financing organizations. It also involves the providers of critical financial utilities, such as payment systems and central banks. Financial services intermediation is the way that these companies help channel cash from savers to borrowers and redistribute risk. Banks do this by aggregating cash from depositors, while insurers pool risks to protect themselves from the consequences of individual losses.
This is the foundation of the industry. Without it, people couldn’t borrow or invest, and businesses wouldn’t be able to expand. It also provides a vital link between the economy and consumers, making financial services a key contributor to economic growth.
As a result of this important role, the industry is highly regulated. This can often mean long hours and high levels of stress, but it’s a trade-off that most in the sector are willing to make because of how much they love what they do.
In addition to being a lucrative industry, financial services provide a wide variety of career paths. Many people begin their careers in the industry as teller or customer service representatives, and then move up to positions like portfolio manager, securities trader or wealth advisor. There are also non-profit and community-based financial services companies that offer counseling or money management advice.
Choosing the right career path in financial services starts with understanding the different jobs within the sector. Once you know the range of roles, you can start narrowing down your options based on what type of position best fits your skillset and career goals.
There are plenty of opportunities to explore in the financial services industry, but not all of them will pave the way for a successful long-term career. That’s why it’s so important to weigh your options carefully before you commit to a job in the field. To find out more about how you can get started in this exciting industry, reach out to Phyton Talent Advisors today. Our team of talented professionals are ready to help you find the right role for your career aspirations. Contact us to learn more about our open roles today! We look forward to hearing from you!