Financial services refer to the various activities that help consumers and businesses acquire and manage funds. They help people save and invest for their future. They also provide an avenue for individuals to buy goods and services by providing credit. Companies that offer these services are called financial services firms. These include banks, credit card companies, insurance providers, and stock brokerage firms.
The government also uses these financial services to meet its short-term and long-term funding needs. It can raise short-term funds through the money market and long-term funds through the securities markets which are a part of the financial services industry. It can even obtain foreign currency needed for its operations through the foreign exchange market.
For individuals, financial services allow them to save for major purchases, and they also provide loans that can be used for any purpose. Insurance is another important aspect of this industry and it protects individuals against risks such as death, illness, or property loss.
Careers in financial services are very lucrative. These companies often invest in their employees and encourage them to pursue continuing education opportunities. They are also known for promoting from within and offering advancement opportunities based on merit.
As a result, it is easy for someone who works in this field to climb the ranks. Whether they are in a role that helps a large number of individuals, or work with a smaller group of high-net-worth clients, they can enjoy a rewarding career.