Financial services is a broad term that refers to the entire industry of money management and investment. It includes a wide range of businesses, from banks and credit unions to insurance companies and credit-card companies.
A strong and healthy financial services sector is crucial to a nation’s economy. It enables consumers to secure loans for mortgages, cars, and other purchases; helps individuals save for retirement and other goals; safeguards people’s property and health through insurance; and provides millions of workers with well-paying jobs.
Financial services also support the rest of the economy by facilitating business and personal transactions, such as lending money to businesses or buying stocks and bonds. These activities are known as “financial intermediation” because they connect investors with businesses that need capital. They can be a powerful economic force in the world, but when they are not managed well, they can cause great harm.
A major reason for this is that, unlike other industries, which can recover from a downturn if interest rates rise moderately or even fall, the financial services sector is very susceptible to rapid interest rate increases and other financial collapses. When the financial sector collapses, it can trigger a recession and sometimes even depression.
The Pros and Cons of a Career in Financial Services
The pros of a career in the financial services industry include high salaries, opportunities to move up quickly, and valuable problem-solving skills that are in demand worldwide. The cons include the risk of volatile market conditions and the need to stay up-to-date on ever-changing laws and regulations.
Despite these risks, a career in the financial services industry is still an attractive choice for many people. The field is diverse and offers a wide variety of roles, from entry-level positions to highly-paid senior management roles. Many of these careers offer excellent job security, and there are also a number of opportunities to work internationally.
A successful career in the financial services sector requires a good deal of interpersonal skills. As a result, it is often more important to have a personality that fits the role than a particular degree or experience. This is especially true for entry-level jobs, where a high level of interpersonal skills can overcome a lack of formal qualifications. Phyton Talent Advisors works with professionals in the financial services industry every day, and we see that having a strong fit between the person and the role is essential to success. This is why we encourage candidates to consider a career in financial services.