Financial services are the activities that businesses, governments and individuals engage in to further economic goals. These activities include buying and selling products (or assets) like stocks and bonds; making debt repayments or taking out loans; and administering payment systems such as facilitating electronic funds transfers, issuing credit cards, and processing checks.
Financial markets facilitate the exchange of money, goods and services for monetary value by matching supply and demand. These include stock, foreign exchange and derivatives markets as well as payment and settlement systems such as interbank networks.
The provision of financial services involves a high degree of trust, as savers and borrowers alike must be confident that their funds are safe. For example, purchasers of life insurance expect the company to still be around when they die, and that they will receive sufficient compensation for their policy’s worth.
A career in the financial services industry is incredibly varied and offers many benefits. You’ll gain invaluable experience in a wide range of areas and develop excellent interpersonal skills. Additionally, pay in the sector is competitive and you’ll often have access to plenty of opportunities for promotion. However, the industry can be challenging at times as it’s often a highly competitive and fast-paced environment. You’ll need to be quick-thinking and adaptable if you want to succeed in this area. The sector is also highly dependent on technology, so it’s crucial to stay up-to-date with innovations in the field.