Financial services are the professional firms that facilitate investment and consumption funds flow, credit, savings and transfers. They are a critical driver of national economies and include banks, investment houses, lenders, finance companies, insurance firms and real estate agents. The industry extends credit, manages liquidity, invests funds for various periods and redistributes risks, thereby stimulating economic growth and development.
Financial service providers offer a wide array of products and services to meet the diverse needs of consumers, from traditional bank branches to online-only institutions. Many of these organizations are heavily invested in employees and encourage professional development, including on-the-job training. This makes breaking into the field much easier, especially for young candidates who can demonstrate their potential to grow within the company quickly.
When choosing a financial service, it’s important to weigh your options carefully and choose the best option for you based on your specific goals and risk tolerance. It’s also a good idea to regularly reassess your choices to ensure they remain aligned with your evolving needs and goals.
Although the financial services industry seems to be all-encompassing now, it wasn’t always that way. Before the 1970s, each sector of the industry more or less stayed within its niche. For example, banks offered checking and savings accounts while loan associations focused on mortgages and auto loans. Similarly, brokerage companies provided investment opportunities in stocks and mutual funds, while credit card companies only offered their services via debit or credit cards.