The Different Types of Financial Services Institutions
Whether you’re looking to break into the field or move up the ladder, there are a lot of opportunities in the financial services industry. But before you take the plunge, make sure you have a good understanding of the different types of financial services institutions.
In general, there are four basic roles in the financial services industry: banking, investment management, insurance, and other money-related services. Some roles require a degree, but it’s not always necessary.
In the banking industry, banks offer a range of financial services, including checking accounts, loans, and savings accounts. Commercial banks also provide credit facilities to customers and advise companies on mergers and takeovers.
Investing firms help businesses raise funds by buying and selling stocks and bonds. Other financial service providers are specialized in certain areas, such as structured finance, which creates complex products for high-net-worth individuals and institutions.
Similarly, there are several community-based nonprofit organizations that provide counseling, financial advice, and money-management services. These organizations are often led by an independent agency that ensures clients are treated fairly.
Other types of financial services include currency exchange services, tax filing, and credit card machine services. The Financial Services Sector includes thousands of depository institutions, as well as providers of investment products.
A successful career in financial services usually involves a mix of both hard and soft skills. Many positions require more than a degree, but it’s still possible to break into the field if you have a knack for one of these areas.