Financial services are a vital part of the economy and provide a wide range of business services. These include deposit-taking, lending of all types and the provision of critical financial utilities. It is a powerful economic driver and influences the standards, practices and operations of other industries.
Many people think of banks, stock market brokers and mortgage lenders when they hear the word financial services. However, there is a lot more to the industry than these three types of businesses. The financial services industry encompasses many different types of firms that provide banking, investment, debt and asset management, brokerage and insurance to individuals, small businesses, large companies and even nonprofit organizations.
A key aspect of the industry is that it provides intermediate services rather than end products. This is similar to how economists distinguish between consumer goods and capital goods; an orange is a consumer good when it is eaten by a person, but it is a capital good when it is purchased for use in a deli, where it becomes orange juice. Financial services firms buy and sell these types of products, as well as provide other intermediary services such as insurance underwriting, credit reference and information services, securities trading and the provision of financial market utilities.
Some of the most popular jobs in the field of financial services are actuaries, accountants, bankers, investment managers and brokers. These professionals work in the financial services industry to advise and help clients make wise investments. These people are typically highly educated and have a lot of experience in the field. They also have a high level of technical expertise and know how to analyze and interpret data.
Another job in the field of financial services is a credit analyst, who works to analyze and evaluate risk and develop a credit profile of an individual or company. This is often done to determine whether a company should grant a loan or line of credit. This is a very important job in the financial services sector because it helps to protect consumers from scams and fraudulent activity.
There are several other jobs in the field of financial services, including private equity funds and venture capital providers, angel investors who supply investment capital to small companies in exchange for ownership stakes, and payment recovery specialists who assist with recovering money that has been paid to vendors by businesses in error. These are all important roles that help to ensure that the financial industry operates smoothly.
Another important aspect of the financial services industry is that it provides essential services to other industries. These include accounting professionals, who keep track of the income and expenditures of individuals and businesses. They are able to provide accurate reports that can be used by other people and businesses to manage their own finances. This can lead to greater success in the field of business and help to avoid financial disasters. These professionals can also help businesses to keep their taxes low by helping them with proper tax planning.