When you think of the term financial services, you likely envision banks, brokers and mortgage lenders. However, the industry is much more encompassing than that. It includes everything from money management firms to credit card companies, insurance agencies and investment companies. It also encompasses Wall Street and the large companies that populate it, as well as small community banks, small businesses and nonprofit organizations. In short, it is “everything that touches money,” says Ryan Duitch, president and CEO of Arro.
Financial services institutions provide the financial tools that allow people to save and invest for future use. They also facilitate the exchange of funds between investors and businessmen. This helps to boost production and leads to economic dynamism. A vibrant capital market is the best barometer to assess the condition of a country’s economy.
This is because the more there is hectic activity in a stock exchange, the better the economy is. The financial services help to maximize the profit of a businessman by providing various credit facilities like hire purchase finance, factoring, etc. These facilities enable the businessmen to expand their operations and thus make more investments. These investments lead to more output and greater profits in the long run.
Moreover, these financial services help to increase the purchasing power of individuals. This is because they can afford to buy more consumer goods and services due to the availability of credit at a reasonable rate. This also enables the consumers to spend more and hence improve their living standards.
Another important role of financial services is to protect the assets of individuals and businesses. For example, insurance is available against death or injury (life and health insurance), against the loss of property (homeowners and auto insurance) and against liability. This ensures that when a person or business experiences a disaster, they can pay for the damages.
Despite all of the pros that come with a career in financial services, it is essential to remember that this is not the right field for everyone. It is especially important for aspiring young professionals to weigh the benefits and drawbacks of this sector before making a decision. The stress that is commonly associated with this type of work can be a detriment to one’s mental and physical health, as well as lead to burnout. In addition, a career in this sector can be very competitive and can result in long hours. It is not uncommon for employees in this field to work 16 to 20 hours per day. Lastly, this is an industry that is heavily regulated and this can hamper growth and innovation. However, with proper planning and preparation, it is possible to have a successful career in financial services. It is just a matter of understanding the industry and what your specific goals are. If you are looking for a career in this sector, it is best to consult with a professional advisor before making any decisions. They can give you the best advice on how to navigate this complex industry.