Whether you’re investing in the latest technology or helping clients with their finances, working in Financial services means using a variety of skills and having a broad understanding of different areas. The field of finance is broad and includes everything from banking, wealth management, investment and insurance.
A strong financial services sector is a key component of a country’s economy. It enables people to make large purchases and save for the future, it allows businesses to access capital markets and it facilitates trade. In turn, this supports other industries and the overall economy.
Financial services are broadly defined as “everything that touches money.” That includes banking, investments and credit. But it also covers the likes of credit unions, mortgage companies and stock brokerage firms. And while it may seem as though the industry is all-encompassing today, that wasn’t always the case. Before the 1970s, each part of the financial services industry stayed pretty close to its specialty. Banks handed out checking and savings accounts while loan associations provided mortgages and personal loans. And brokering companies and mutual funds were the place to invest in stocks, bonds and other assets.
The tertiary sector is also supported by financial services. Consumers are able to purchase more goods and improve their standard of living through hire purchase, leasing and housing finance companies. Meanwhile, the presence of factoring and forfaiting companies helps to step up domestic and foreign trade promotion. Insurance companies, meanwhile, offer protection against various kinds of risk including death, disease, loss of property and damage to crops and animals.