Careers in Financial Services
Financial services include all activities that touch money in any way, shape or form. This is a huge sector with many opportunities, so it’s important to have a solid understanding of what it encompasses before you decide to pursue it as a career. Financial services are the intermediaries that channel cash from savers to borrowers, helping to put savings to productive use. They also redistribute risk, allowing individuals to invest in the next great technology or buy a house without having to take on all of the risk themselves.
Some of the most common types of financial services include deposit-taking, credit intermediation and asset management. These are all key areas for people interested in careers in the industry to focus on.
Deposit-taking institutions accept individual savings and offer a variety of accounts to keep them safe. They then use these deposits to lend money to borrowers, often at a profit in the form of interest. Credit intermediation firms evaluate and approve borrowers before lending them capital for purposes like starting a business or buying a home. They also help to manage the nation’s money supply, preventing inflation from growing out of control.
Asset management firms help investors purchase and sell assets in order to meet specific monetary goals. These may include stocks, bonds or real estate. Insurance is another major aspect of the financial services industry. It protects individuals and companies against loss in the event of a disaster (like death or injury), property damage, and even bankruptcy.