Many people think of banks, brokers and mortgage lenders when they hear the term “financial services.” But this sector is much more than just those three areas. It also includes Wall Street and other financial exchanges, insurance companies, investment firms and private equity investors. And it provides not just individuals but also small businesses, large corporations and even the government with the funds they need to function.
A strong financial services sector is key to a healthy economy. It helps people save and invest their money, which enables businessmen to boost production and reap more profits over time. It also allows people to purchase goods and services by providing credit at a reasonable rate.
The sector also ensures that the capital market is active. This means there are lots of investments happening in the country, which is a sign of economic growth and prosperity for the people.
While the banking industry is primarily concerned with direct saving and lending, finance encompasses a wider range of activities like investing, insurance and redistribution of risk. The two sectors are not to be confused with each other, but rather complement one another.
There are many career opportunities available in the financial services sector, and while it is true that a degree is not always necessary, it does help you advance quicker. This is a field that values aptitude over tenure and many employers offer ongoing training to their employees. In addition, the sector is dominated by multinational corporations that are known to promote from within their ranks based on merit.