Financial services encompass a broad range of businesses and professions that handle money and facilitate transactions. They are a vital part of the economy and provide a host of benefits to consumers and businesses. However, it is important to note that not all jobs in this sector pave the way for future career growth. As a result, it is important for those interested in a career in financial services to fully understand the industry’s scope before making any commitments.
The term “financial services” seems to be all-encompassing today, but it wasn’t always this way. Before the 1970s, each sector of the industry specialized in its particular offering. Banks offered deposit products like checking and savings accounts, loan associations provided mortgages and personal loans, while brokerage companies gave investors access to investment opportunities in stocks, bonds, mutual funds and other investments. Credit card companies marketed and provided credit cards, while payment networks, such as Visa and Mastercard, processed and facilitated payments between individuals and businesses.
As the economy grows, so does the demand for financial services. This is especially true in the global market where consumers are more mobile and often travel between countries with varying banking and investment practices, standards and regulations. This increased consumer demand creates new job opportunities for those who want to work in the financial services sector.
However, the financial services industry can be very stressful and many of the jobs require long hours. It is also important to be aware that many positions in this sector are heavily regulated, which can make it challenging to achieve a healthy work/life balance. As a result, it is not uncommon for people in this sector to burn out and leave their jobs prematurely.
Despite the negative aspects, there are many reasons to choose a job in financial services. For example, if you are a people-person and have strong organizational skills, you may find working in this sector rewarding. In addition, you will be able to help people manage their finances and achieve their financial goals.
Another reason to choose a job in financial services is the high income that can be earned by those who are successful. This type of salary can be very appealing, especially if you are married and have children.
In addition, financial services can be very beneficial for poor families. Without access to financial services, families must store their savings in floorboards or under their mattresses – a dangerous and unsecure method of saving. With access to financial services, poor families can purchase land, build or improve their homes, buy livestock and consumer durables, and expand their businesses. This allows them to consume a more consistent diet of goods and services, thus reducing poverty levels. This process is known as consumption smoothing. Ultimately, it is the role of financial services to reduce the fluctuations in consumption and income that are caused by economic ups and downs. Without financial services, economic crises would be much more frequent and severe.