Financial services is an umbrella term that encompasses a wide range of industries and professions. It includes banks, brokers, mortgage lenders and much more.
The financial industry is an important part of the economy. It provides a bundle of critical functions that enable businesses, individuals and other organizations to conduct transactions, mobilize savings, allocate capital funds, manage risk and redistribute wealth.
Banks, investment banks and credit unions are all part of this sector. These institutions offer a variety of services that include depositing and withdrawing money, making loans and other investments, and providing insurance.
These institutions earn revenue primarily through fees and commissions on loans, deposits and other financial activities. They also charge interest on the balances in their customers’ accounts, which are called deposits.
Investing in the right financial products helps people protect themselves against unexpected events and make smarter, more informed decisions about their finances. It also helps them experience greater financial wellness, which can lead to a more positive lifestyle and better physical and mental health.
Banking and insurance are two other main types of financial services that help people manage their money and get out of debt. These services are offered by large commercial banks, community banks and credit unions.
Consumer finance is another type of financial service that involves helping people afford goods and services by paying in installments over time. This includes things like mortgages, student and personal loans, and credit cards.
A career in financial services can provide a great opportunity to work with a variety of people and develop a diverse set of transferable skills. However, it’s also important to consider the pros and cons of this field before choosing a career path.