Financial services is a large sector of the economy that includes banking, insurance, and other areas related to money. It’s essential to understand how these sectors work because they affect your own finances and the entire financial ecosystem.
The industry offers a diverse range of careers that can include everything from working at a bank to helping a client with their taxes. In many cases, a person in one area of the financial services industry will have to learn about the other sectors as well, making it important to be familiar with the variety of professionals and products involved.
Banking – The foundation of the financial services industry, banking includes services such as a checking account or a mortgage loan. These services are provided by many different companies, including major commercial banks and credit unions.
Investment – Another industry in the financial services sector, investments involve buying and selling securities to earn profits for investors. This can include a variety of different types of businesses, such as brokerage firms and hedge funds.
Asset Management – This sector handles a number of different types of financial assets, such as pensions, insurance, and mutual funds. These assets can be complicated and require a significant amount of expertise.
Conglomerates – A type of financial services company that is active in several different sectors of the financial services market. This strategy is often used by companies to diversify their earnings by acquiring a variety of smaller businesses in each sector.