The financial sector is a complex web of interrelated businesses. Its professionals work in a wide range of areas, including deposit-taking; lending of all types; insurance agency and brokerage services (including life, non-life, and health insurance); reinsurance; actuarial services; credit reference and analysis; investment funding and capital market intermediation services, such as securities underwriting, money broking, and syndication; payment and money transmission services; and asset management, including pension fund management.
As a career path, financial services offers many opportunities to grow. Professionals are often encouraged to continue their education and many firms offer extensive on-the-job training and mentoring programs. In addition, the sector is known to promote aptitude over tenure, making it easier for employees to advance quickly.
The industry’s success depends on a strong level of trust between savers and borrowers. It also depends on a well-functioning financial system that ensures a sufficient supply of liquidity, which is essential for the real economy to function properly. Without adequate liquidity, the business environment suffers, and people’s ability to spend is constrained. This is why it’s so important that governments oversee the financial services sector through licensing, regulation and supervision of various aspects of its operation. Whenever the financial services sector is healthy, it helps foster consumer confidence and boost purchasing power in the economy as a whole. Conversely, when the sector falters it can have a negative impact on the economic growth of a country. Financial activities are the initiatives and transactions that individuals, companies, and governments undertake to further specific monetary objectives.