Financial services are the activities that are involved in managing money and other related products. This includes banking, mortgages, credit cards, insurance, real estate and payment services.
The sector is an integral part of a country’s economy, ensuring that the capital and liquidity of the market are freely flowing. It also helps companies manage their risk and grow.
A strong financial services sector leads to economic growth, while a weak one can cause the economy to decline. The sector includes banks, credit unions, finance companies and some government-sponsored enterprises that offer various services, including loans, investments and debt resolution.
Definitions
A service is a temporary task performed by a company or individual, such as a loan officer or investment adviser. A financial good, however, is a product that lasts beyond the initial provision. Examples of financial goods include stocks, bonds, commodity assets, and insurance policies.
Jobs in financial services rely on a wide variety of skills, from computer savvy to interpersonal communication. Some positions require a degree while others require less education.
The industry is a lifecycle-based business, meaning that it’s important for financial firms to anticipate their customers’ needs at various stages in their lives. By leveraging data, they can tailor their offerings to suit the right customer at the right time.
The finance industry combines a range of industries, from banking and investment funds to credit card issuers and technology companies. It’s a rapidly changing sector that requires the latest financial technology to be successful.