While some might think that the terms financial services and Wall Street are synonymous, it is important to note that there is much more to the industry than just banks, brokers and mortgage lenders. The broader scope of the industry includes things like credit card networks, global payment processing providers, debt resolution firms and securities exchanges that facilitate stock and derivatives trading. It is this broad range of financial services that ensures the flow of money between consumers, businesses and investors.
The economy, both local and national, depends on the financial services industry to function. When the industry is strong, it can help businesses of all sizes thrive and encourage people to spend more, which in turn helps the economy grow. On the other hand, a weakened financial services industry can result in a recession and even depression.
Most people will need the assistance of a financial services firm at some point in their lives. Some might only need to open a bank account, while others may require help with investing or planning for retirement. No matter the need, there are professionals ready to provide that assistance. The four primary types of financial services include banking, investment, insurance and credit.
Banking services include depositing and withdrawing money, providing loans, and offering other treasury management functions. They can also provide safe deposit boxes and wealth management services.
The majority of the world’s families rely on financial services to store and safeguard their money. Previously, many families saved their money by placing it under the floorboards or in a container, which is an insecure way to keep funds. When financial services are available, families can build their savings in a trusted institution and use them for things like purchasing land and construction of homes, or livestock and consumer durables.
Investing is a significant part of the financial services industry, as it provides ways for individuals to make money through the stock market or by buying shares in a business. Investment services can help an individual become a successful entrepreneur or can offer them the opportunity to earn a higher yield on their savings by investing in a mutual fund.
One of the best ways to break into the financial services industry is by building a solid network and seeking out mentors in the field. Having connections to people in the industry can often pave the way to landing an interview, and once you’re on the job, a strong relationship with a superior can help you move up quickly in your career. It is also a good idea to take entry-level positions, as these can provide an excellent learning opportunity and can give you the skills you need to advance into more prominent roles.