The financial services industry provides many of the services that support a country’s economic system. These include banking, borrowing, saving, and investing. The sector consists of thousands of companies that offer various products and services to individuals, businesses, and governments. It is an essential part of any economy, as it channels cash from those who have money to those who need it. In addition, it redistributes risk by aggregating savings and investments into pools that can absorb losses and make a profit. For example, banks take the risk of lending to borrowers and earn a profit from the interest they charge, while insurance companies pool cash to pay out policy holders whose risks are realized.
In this industry, you can find a career that best suits your skills and interests. Some jobs in the field are extremely lucrative and provide a high income, but they also tend to be highly stressful and often require long hours. It is important to build a network within the industry when applying for jobs in this field and be prepared for a competitive job search.
A good place to start is by gaining an understanding of the different types of financial services and their functions. The financial services industry is vast and includes everything from direct saving and lending to investment and insurance. Many of these companies operate as conglomerates, where a single company offers multiple products. This was made possible in the 1990s with the Gramm-Leach-Bliley Act, which allowed for the consolidation of financial services firms and repealed the Glass-Steagall Act.