Financial services are the products and services that facilitate the exchange of money. The industry includes a wide variety of businesses, from banking to insurance to investments and more. A strong and stable financial services sector is vital to the economy of a country, as it allows consumers to spend more, which helps businesses of all sizes thrive. It also provides a safety net for people who may have to spend more than they’re making, by providing the opportunity to obtain loans or insurance policies.
Banks are the foundation of the financial services industry, as they are involved with direct savings and lending. However, the lines between banks and other financial services are increasingly blurring, as companies offer more of a range of products. These services can include investing, insurance, and redistribution of risk.
Companies in the financial services industry use data to predict customer needs and offer them relevant products at the right time. For example, they may look at a person’s history with other products to identify major life events such as a wedding or purchase of a house that could trigger a need for a loan. They then provide the product to the customer at this key point in their lives, such as a home equity line of credit.
Careers in the financial services industry can be lucrative, as they often pay well and offer opportunities for advancement based on merit. But, it’s important to remember that these are also highly stressful jobs. Many employees work long hours and can experience burnout.