Financial services are the broad economic sectors that encompass depository institutions, providers of investment products and insurance companies. These sectors support the entire economy by lending capital, managing assets, and providing critical financial utilities. They also provide the necessary backing for a healthy credit market and stable investment environment.
When you think of the financial services industry, your first thoughts are probably about Wall Street, stock brokers and mortgage lenders. But it’s important to understand that the financial services industry is much more than those three things. It is “everything that touches money,” says Ryan Duitch, president and CEO of Arro. That includes not only traditional banks and brokerage firms but also insurance companies, real estate brokers, hedge fund managers and many other professionals who are involved in this vital sector that supports individuals, small businesses, large corporations, nonprofits and the government.
Despite the heightened anxiety and uncertainty caused by the coronavirus pandemic, this is still an excellent time to explore career options in financial services. The industry is resilient and adaptable, with many opportunities for professionals to take on new challenges and build on their existing skillsets.
For example, the demand for credit cards and digital payment tools is on the rise as people seek ways to manage their finances from home during the pandemic. This has created a host of new jobs for customer service representatives, software developers and product managers at credit card issuers and processors. Additionally, 2023 is expected to be an exceptionally active year for mergers and acquisitions, with companies of all sizes focusing on building up their talent pools and acquiring new technology to stay competitive.
As the economy continues to grow, it will need an ample supply of financing to fuel new investment, production and growth. The presence of a vibrant financial services sector is the key to economic prosperity, as it provides companies with the funding they need to grow and thrive. The more funds a company has available, the greater its potential to reap profit.
A robust financial services sector is the backbone of a healthy economy, and it’s essential for all countries to ensure they have the proper infrastructure in place to keep it growing. Whether it’s a mortgage lender facilitating the purchase of a home, an insurance broker helping individuals secure a life insurance policy, or an investment bank overseeing the sale of shares in a company, these industries are the glue that holds the economy together.
In addition to their core functions, financial services also help companies change their capital structures in order to grow and expand. They can facilitate complicated transactions, lender negotiations and accelerated M&A to meet the demands of a changing marketplace. In addition, these services can address emergencies like bankruptcies and volatile markets by accelerating liquidity and providing a cushion to prevent or mitigate the impact of a crisis. Consequently, this industry is a major source of employment across the globe. It offers a high salary range, especially at the entry-level, and most employers offer generous training and development programs to encourage professionals to grow with their company.