Financial services is a broad industry that encompasses banking, insurance, and investments. It’s a field that can be extremely rewarding, as long as you have the right skills and connections.
Banks are the primary players in this industry and their main function is to collect money from depositors and lend it to borrowers who need it. About 10% of the money deposited into banks must stay on hand for the Federal Deposit Insurance Corporation’s (FDIC) reserve requirements, but the rest of it is available to loan out.
Governments rely on financial services to raise both short-term and long-term funds for meeting their revenue and capital expenditure needs. This is done through the money market and through the sale of government securities in the securities market.
The presence of financial services also makes it possible for companies to receive finance at reasonable rates and hence earn profits. This can be in the form of credit cards, hire purchase and mutual funds.
Accounting is a hugely important part of this industry as it ensures that businesses and individuals keep proper records for tax purposes. It also helps small businesses keep accurate records of their finances so they can avoid penalties.
Insurance is another big player in this industry as it protects assets from death, injury and other risks. Professionals in this sector can assist with life insurance and can also help people get home or auto insurance.
The job satisfaction level of those in this field is often very high. This is because of the variety of positions and because many of these firms are global organizations, so there are always opportunities to relocate.