Financial services is a broad category that encompasses various activities and companies that provide financial products and services. The sector plays a crucial role in the economy, helping individuals and companies save and borrow money to invest in their businesses and homes.
Banks and insurance companies are two examples of providers that help put cash to productive use through intermediation, which is the process of transferring funds between people or organizations. This is done through accepting deposits, making loans, and administering payment systems.
Credit card machines and networks, debt resolution services, global payment providers, and exchanges that facilitate stock, derivative, and commodity trades are other types of financial market utilities. These utilities make it possible for customers to pay each other and receive payment from others, including employers.
The main goal of the financial services industry is to create and maintain trust between consumers and companies. That’s why governments regulate and supervise these institutions.
A major factor in the growth of the industry is the availability of training and education. This helps professionals in the field stay up-to-date on the latest techniques and technologies.
Some financial firms offer on-the-job training and ongoing educational opportunities. These opportunities are important because the industry changes so quickly and new tools are introduced all of the time. It is also common for financial firms to promote from within based on merit and aptitude, rather than tenure. This makes it easier for a younger professional to move up the ladder.