Financial services include insurance, lending and investing. Insurance is a type of safety net, which covers the policyholder in case of an accident. Loans are offered by banks. They loan money to people, which they repay with interest.
Financial services have been regulated by governments. These agencies ensure transparency and regulation in financial services. Some government-run organizations help consumers manage their money. Others are community-based nonprofits that offer counseling.
Investment services include retirement planning, hedge fund management, and wealth management. Investing is a great way to increase savings. Banks often finance mutual funds. Their goal is to maximize yields.
Insurance companies protect individuals from business risks. Many types of insurance are available. For example, life insurance protects the beneficiaries of a deceased person.
Aside from these, many firms also offer advisory services. Financial advisors advise clients on investments, taxation, and other financial matters. Professional financial advisory service providers also provide investment due diligence and valuation, as well as real estate consulting.
Some of the leading conglomerates operating in the financial services industry are Berkshire Hathaway, American Express, and Visa. Each has a specific area of expertise.
While there is no right or wrong path to pursue in the financial services field, a degree is a useful asset. It can open doors for more responsibility and a higher salary.
Some of the major banks in the United States are Wells Fargo, Citibank, and JPMorgan Chase. They all offer banking services to customers. Commercial banks also advise companies on mergers and takeovers.