Financial services are a vital component of the economy and affect individuals, companies, and governments. They include deposit-taking, loans, investment services, and all forms of market intermediation, such as securities, commodities, and currencies.
For example, banks are intermediaries that channel cash from savers to borrowers by collecting deposits, pooling them, and lending them out. This reduces the risk for savers by spreading it among many borrowers, so that one borrower’s default does not derail the entire system. Insurance services are also a form of financial intermediation that protects against loss or damage. Insured people may be protected against the death or disability of an individual, against the destruction or loss of property (automobile or home insurance), or against a lawsuit or liability.
A strong financial sector contributes to economic growth by encouraging investment, production, savings and consumption. It also enables producers to raise the funds necessary for investment and expand into new markets, thus creating more jobs.
Careers in the field of financial services offer a wide range of possibilities, depending on your skill set and what kind of job you want to do. There are roles for everyone from bankers and credit analysts to accountants, wealth managers, and insurance agents. Some jobs require a degree, while others rely more on interpersonal skills and experience. Regardless of the role, many financial services businesses promote from within on the basis of merit, and are known for their intense training and mentoring programs that prepare new hires for success.