Financial services are an important part of any country’s economy. They help facilitate transactions that involve money and provide small businesses, big companies, nonprofits and government agencies with the financing they need to grow and prosper.
A broad industry affecting everyone, even small community banks and credit unions, the financial services sector includes thousands of depository institutions, providers of investment products, insurance companies and other financing organizations that play an important role in a country’s economic health. It also involves Wall Street and other professional firms that deal with the making, investing and managing of money for individuals and organisations.
Banking – The financial service sector’s primary concern is saving and lending, although it incorporates many other related activities, including investments, insurance and the redistribution of risk. This is done by large commercial banks and other financial entities like credit unions, whose revenue is derived from interest rates charged on loans, the spread on interest rate between deposits and loans and fees or commissions earned from selling services.
Mortgages – A financial service that enables individuals and businesses to borrow money for homes, cars and other purchases in fixed-rate installments. These are offered by lenders, such as banks and mortgage brokers.
Credit cards – A financial service that allows consumers to pay for goods and services using plastic. These are offered by banks and credit card issuers, as well as merchant services providers that offer them to a wide variety of business types.
Insurance – A financial good that helps protect people against the risks of death or injury, such as life insurance or auto insurance. These are also offered by insurers and brokers.
Asset management – The financial services sector’s second category includes companies that manage pension funds, insurance assets and hedge funds. These companies often use specialized software to handle their assets and the financial needs of their clients.
Personal finance – The financial services industry’s third segment deals with the making, investing and managing of money on a personal level. This includes helping people save for the future, paying off debt and planning for retirement.
Financial services are a diverse field, requiring a wide range of knowledge and abilities to be successful in the job. Depending on the specific industry, you might need a degree or other certification in order to pursue a career in this area.
Getting a job in the financial services industry is competitive, but if you have the right skills and the passion for your work, you could find yourself earning PS45,000 or more a year as an entry-level employee. In addition, if you work your way up to the top, your pay could go higher still.
Some of the highest-paying jobs in financial services are held by professionals with a high level of leadership and communication skills. These are the type of traits that can be honed and acquired through on-the-job training or through volunteer opportunities. The financial industry is one of the most highly-competitive in the world, and you should always be looking to bolster your soft skills.