The Financial Services Industry
The financial services industry is comprised of thousands of depository institutions, providers of investment products, insurance companies, and credit and financing organizations. It also includes the critical financial utilities that provide the infrastructure for these activities.
Financial services ensure that businessmen can acquire adequate funds to boost production and reap more profits. They do this by facilitating the process of lending and borrowing. The active participation of financial services in the capital market also helps in the promotion of domestic and foreign trade by allowing businesses to import goods and export them at a more reasonable rate.
As a result of their crucial role in the economy, employees in the financial services sector enjoy relatively high job security. However, some of these positions can be highly stressful and lead to burnout. This is especially true of jobs in the debt resolution and credit card processing sectors as well as those working for large financial institutions such as banks.
The financial services industry is regulated on a national and international basis by the government. This is done to protect consumers and promote competition in the marketplace. The goal of the regulatory bodies is to create a level playing field where all consumers can make informed decisions about the financial products they purchase. However, the financial services industry remains fragmented as many players offer products that are only available in a limited number of markets. This fragmentation can create barriers to competition and increase consumer costs.