Financial services are a broad range of companies that deal with money, from banking to insurance to investment. These businesses can be found in all sizes of organizations, from big banks to small community banks.
Banks are the places where you keep your money, and they also offer loans that can help you buy a home, car, or other items. They charge interest on these loans, and a portion of the money they collect goes back to the people who opened accounts with them.
Whether you want to work in the financial industry or not, it’s a good idea to know what they do and how they make money. This will help you figure out what type of career is best for you, and whether it’s a good fit for your goals.
Banking and lending: This is one of the more popular branches of the financial services sector. This includes handing over deposits to customers and extending them credit, which they then pay back plus an additional amount of interest. It’s regulated by the Federal Deposit Insurance Corporation (FDIC).
Advisors: This branch of the financial services sector helps both individuals and companies with their financial planning. They can be hired to help with due diligence on investments, valuations for real estate, and more.
They also provide advice on business finances, helping them to get the most out of their company. It’s a competitive industry, and the only way to stand out is to have a great degree of aptitude.
This is a field that’s always evolving, and it can be challenging to stay up to date. However, many employers encourage employees to take classes and get certified. This will help you advance in your career and become more knowledgeable.
These firms are a vital part of the economy and can be hugely lucrative. They employ thousands of people around the world, and they’re often able to offer excellent wages.
Asset management: This is a big part of the financial services sector, and it encompasses everything from pensions to hedge funds and mutual funds. It also includes brokers who sell and buy securities on behalf of their clients.
Brokers also do research and buy and sell shares of other companies. This can be a great source of income for brokers.
Angel investors: These are independently wealthy individuals looking to invest in startups and small businesses. They typically purchase a stake in the company, allowing them to have some control over the business.
Regulatory agencies: Independent bodies are also an important part of the financial services industry, overseeing different institutions and upholding consumer protection. They help ensure that customers are treated fairly and can trust their bank or other institution.
Private equity: This is a big part of the finance industry and involves investing in other companies. It can be a great source of income for some investors, and it can allow businesses to grow quickly.
It can also be a good way to diversify your portfolio and gain a variety of experiences.