When you think of the financial services industry, you probably picture banks, mortgage lenders and stock brokers. However, those are only three sectors of the vast industry that encompasses everything from insurance companies to investment firms and Wall Street. The financial services industry also includes credit card companies, currency exchange and wire transfer services. It even extends to a number of professional services, such as accountants and tax filing companies. Financial services also include debt management services, global payment networks like Visa and MasterCard and credit rating agencies.
One of the most important things that a country can do for its economy is to ensure that all businesses have access to adequate funds to boost production and reap more profits in the long run. This is only possible through the provision of financial services, which help companies to gain capital through the stock market and other avenues. In addition, these services also encourage savings by consumers and promote investments into other products and industries.
Financial services also help individuals improve their standard of living by helping them obtain various consumer products on hire purchase or through housing finance companies. They also make it easier for people to invest in other businesses through venture capital firms and private equity companies.
While each sector of the financial services industry offers specific and unique products, they are all interconnected in a larger way. As such, a career in the financial services industry can be extremely rewarding. Whether you are interested in the fast pace of trading on Wall Street or the high-level relationships that come with working for an investment firm, there is a place for you in the industry.
Before the 1970s, the individual sectors of the financial services industry more or less stuck to their own specialties. Banks offered checking and saving accounts, loan associations provided mortgages, broker companies sold securities and credit card companies issued credit cards. Now, financial services companies offer a wide variety of bundled product offerings that cater to the specific needs of all types of investors.
The financial services industry has evolved and continues to grow rapidly, thanks in part to rapid technological advances. This means that there are more opportunities than ever to enter the field and get a foot in the door.
The most popular type of financial services company is a bank. This type of company earns its revenue primarily through fees, commissions and the spread between rates on loans and deposits. However, there are some large financial services conglomerates that operate across multiple sectors of the industry. This helps to reduce the risk of a particular business model becoming obsolete and provides more diversification benefits for its investors.