Financial services are the economic services provided by the finance industry, which encompasses a broad range of service sector businesses that manage money, including credit unions, banks, credit-card companies, insurance companies and consumer-finance firms. Financial institutions promote investment, production and consumption and help to create more wealth in society.
A career in financial services can provide a stable and rewarding work life, especially for people with strong interpersonal skills. However, it is important to weigh up the pros and cons before choosing this career path.
One of the most well-known subsectors of financial services is banking. Banks take in deposits from customers and then loan out that money to individuals and corporations. They also offer other financial services, such as checking and savings accounts, mortgages, loans and credit cards. Retail or consumer banking is a type of financial service that caters to consumers, while business or commercial banking serves small and large businesses.
Another big subsector of financial services is insurance. This includes both life and property insurance. It protects individuals or businesses against unforeseen events that can financially devastate them. Insurance is a financial good, but it is also a financial service that helps people manage risk.
Many other types of financial services exist, such as credit-card companies and investment funds. These firms are able to raise funds and then disburse them in the most profitable way. This allows for greater production and a better standard of living for the general public.