Financial services are a huge part of our lives. They affect us in big ways, like getting a mortgage to buy a house, or putting money into mutual funds when we want to retire early. But they also impact our daily lives in smaller ways, like a bank’s mobile app that lets you pay your bills from anywhere. This sector includes everything from hedge fund managers to small community banks, and even nonprofits. It encompasses “everything that touches money,” says Ryan Duitch, president and CEO of Arro.
Financial services companies facilitate banking, investing, credit card transactions, loans and more. But what’s the difference between financial services and financial goods? It’s important to understand the distinction between the two, because it determines how the industry is regulated and what role it plays in our economy.
Many people use financial services when they save and invest, including opening a checking or savings account to store their money. They can also take out a loan when they need capital for something like buying a car or a home, or to start a business. Then, there are the financial institutions that offer depository services and act as intermediaries between savers and borrowers.
As a result, many of the financial services sectors are heavily regulated to protect consumers and ensure their money is handled responsibly. However, those regulations can make it hard for companies to innovate and grow, which can lead to a lack of consumer choice and stagnation. Some of these industries also face high levels of stress, which can make it difficult to find a work-life balance and can cause burnout for some workers.
Despite the challenges, a career in financial services can be rewarding. Job security is one of the biggest perks of this field, and it’s not uncommon to see salaries in the six-figure range. And since financial services is so integral to our everyday lives, it’s an in-demand field that can be a good choice for those who want a stable career path with lots of opportunities for growth and change.
To break into the industry, it’s important to build your network by establishing relationships with recruiters or headhunters. You can also look for entry-level roles that will help you learn on the job and gain experience. It’s better to focus your energy on a few jobs you have a chance at landing, than to apply for tons of long-shot positions that won’t get you anywhere. And remember that just because your degree isn’t in finance doesn’t mean it’s not applicable to the industry—many positions don’t require a formal education. Your problem-solving and interpersonal skills will still be relevant. Just be sure to sell yourself well during the interview. You might be surprised at what you can accomplish with a bit of hustle. The most successful employees in the financial services sector know what they’re doing. They know their own strengths and weaknesses, and they can recognize the best fit for them within the industry.