The Nuances of a Career in Financial Services
Financial services are a massive industry that encompasses everything from insurance and money management to banking and payment technology. It’s also a great career choice for people looking to make an impact on their communities. From tech-savvy challenger banks to seasoned incumbents, there are plenty of ways to pursue a career in this sector, but it’s important to understand the nuances of this large and diverse industry.
One of the most common types of financial services is insurance, which provides a safety net for people against unexpected and unavoidable costs. Most people have some form of insurance in their lives, such as a mortgage or car insurance policy. Other forms of financial services include credit unions and community-based nonprofits that provide counseling services or money management advice.
Companies that offer investment services work to help individuals and businesses grow their assets by buying and selling stocks, bonds, mutual funds, and other securities. They may also offer investment advisory services to guide people in making investment decisions. Companies that provide commercial banking services help businesses manage their cash flow by accepting deposits, issuing checks and other forms of secure payment, and lending money to both private and public entities.
Other companies provide debt resolution services, facilitate global payments, and operate exchanges that trade stocks, derivatives, commodities, and other financial instruments. These companies are often called “market makers” because they connect buyers and sellers in the market. Finally, companies that provide reinsurance help mitigate risk by covering the losses of financial services firms that offer other forms of insurance.