Financial services are economic services linked to finance provided by financial institutions. These include banks, credit unions and cooperatives, private equity firms, consumer and commercial finance companies, insurance firms and other credit and loan-related organizations. It also includes the critical financial market utilities, such as stock and commodity exchanges and payment systems.
These services are vital to the economy and help people save money, invest in a mortgage or car, purchase goods and services, get loans and pay for their retirement and medical expenses. A healthy finance sector also provides millions of well-paying jobs and ensures that businesses have access to the money they need to grow and hire more workers.
Unlike some industries that have evolved in the past 100 years, such as technology or retail, financial services are constantly changing and evolving to meet the needs of consumers, and this has led to intense competition. Those in the industry must be ready to adapt and offer a range of products, including mobile banking, digital investing, cash management and other innovative solutions.
This is a lifecycle-based industry, and the best banks understand their customers and what they need at each stage of their lives. They can also anticipate when pivotal events may occur, such as a child graduating college, getting married or buying a house, and then be prepared with the right product at that time.
Some examples of specific financial services include:
Debt resolution services – This is a consumer service that helps individuals who have debt problems and do not wish to declare bankruptcy, negotiate with creditors to allow them to pay less than they owe and maintain their credit. These companies typically charge a fee for their services.
Investment banking – This type of financial service involves advising clients on raising capital, helping them with mergers and acquisitions, and providing financial consulting. This is a business that requires a high level of expertise and training, so it is often only available to those with extensive experience in other areas of finance.
Financial services are the backbone of the world’s economy, and they make it possible for us to buy everything from a home to an education. They also provide a secure way to store our money and investments, as well as protect our health and wealth through insurance. Without a strong financial services industry, the world would be much more unstable. It’s important for NYC, the nation and the globe that people enter this career with the proper education and tools to be successful. In addition to gaining an associate or bachelor’s degree in a relevant field, financial services professionals should consider reading industry publications such as the Wall Street Journal and Barron’s on a daily basis to stay up-to-date on the latest news and developments. They should also be aware of the different regulatory bodies that govern their respective countries’ financial services sectors. This will allow them to keep up with the latest changes in the industry and remain competitive.