Financial services are activities related to the flow of funds in the economy. They include banking, investments, insurance and the redistribution of risk. The strength of a country’s financial services sector is vital to its economic growth. When financial services are strong, consumers earn more and spend more, which stimulates economic activity. When financial services are weak, the economy suffers.
One of the most familiar types of financial service is insurance, which acts as a safety net against unexpected expenses like medical bills or property damage. This type of financial service is provided by private companies that sell insurance, as well as by government-run institutions. Other areas of financial services include reinsurance, debt collection and credit card networks.
There are several career paths within financial services, and the exact path you choose will depend on your qualifications and what sort of work environment you prefer. For example, if you are interested in working with numbers, you might choose to become an accountant. However, if you are interested in providing advice to clients about their finances, you might want to work as a financial adviser.
Despite the many opportunities that are available in this field, it is important to remember that financial services are a cyclical industry, meaning that they tend to hire heavily when times are good and lay off a high percentage of staff during recessions. This can make job security in this field less secure than it would be for jobs in other industries.