The financial services industry is one of the most vital for our economy and, as a result, jobs within it are highly sought after. The industry is made up of a wide range of roles and sectors, each with its own distinct characteristics. If you are thinking of a career in financial services, it’s important to have an in-depth understanding of the different areas within the industry.
There are three main categories that make up the wider financial services industry – depository institutions, providers of investment products and insurance companies. These are augmented by the critical financial utilities that support them, such as credit and financing organizations.
A bank is a classic example of a depository institution, offering consumers a secure place to deposit their money and earn interest on it. They also extend credit to individuals and businesses through loans and credit cards. These financial services are often regulated by government agencies to ensure they don’t harm the economy or put people’s assets at risk.
Other depository institutions include credit unions and community banks, which focus on direct saving and lending. These financial services help build communities and boost local economies. They primarily earn revenue through fees and commissions, such as the spread between interest rates charged on credit accounts and those paid on deposits.
Brokerages and asset management firms are another part of the financial services sector. These companies connect investors with financial products such as stocks, bonds and mutual funds. They also provide advisory services and manage investments to help customers achieve their financial goals. The wider financial services industry is impacted by government regulation, which can slow down innovation and change.
The pay in the financial services industry is generally quite good, especially for juniors. Salaries can start at around PS45,000, and after a few years in the industry you can expect to be earning up to the high five figures. Bonuses are not common, and promotion is usually based on merit, rather than the size of your wallet.
As well as the competitive pay, there are a number of other perks to working in financial services. For instance, job security is pretty good, as positions in this industry are always in demand. Furthermore, you can move between companies or even cities relatively easily, as there are always vacancies for those with the right skills.
Insurance is one of the most well-known kinds of financial services, and it’s a service that most people will have used at some point. It’s a way to protect yourself against the risk of financial loss, and it can cover anything from a mortgage to an injury.
The financial services industry is a massively important one, with hundreds of thousands of jobs across the UK. There’s something for everyone in this diverse industry, and the variety of roles means that you can find a position to suit your specific skills and interests. As long as you are prepared to work hard and stay on top of your game, there’s no reason why you shouldn’t be able to find the perfect role for you in this lucrative sector.