Financial services is an umbrella term for a broad set of economic activities. It encompasses the business of saving and lending, insurance, the redistribution of risk, investment and other financial activities.
Banking is the primary industry in this sector, with banking services provided by large commercial banks, community banks, credit unions and other entities. These institutions earn revenue primarily by the spread between the interest rates paid to depositors and loans to customers.
Finance is an important part of everyday life, providing people and businesses with the money they need to survive and thrive. Financing can range from using a savings account to buy a house to borrowing money to start a company or invest in technology.
Insurance is another source of financing, covering both business and personal risks. Besides being a source of capital, insurance also provides protection against unforeseen events and allows consumers to save for their retirements.
Banks provide a range of financial goods and services, from checking accounts to issuing credit cards. They can also provide other financial services like cashing checks or electronically transferring funds.
The finance industry also includes regulatory bodies that oversee the operations of different financial institutions. These agencies are meant to protect the public and ensure that financial firms adhere to fairness and transparency standards.
A job in the finance sector can be exciting and rewarding, with a wide variety of positions available. However, it can also be challenging and stressful.