Financial services is a large sector that is responsible for lending money to businesses, homeowners and people who wish to invest. It also includes a variety of other activities including investment banking, debt management and asset management. The financial services industry is crucial to the overall health of an economy. Without this sector, those who have money to save would not find individuals willing to take on risk to lend them that money; and those looking to spend their disposable income wouldn’t be able to purchase goods and services.
When most people think of financial services, they think of Wall Street and the stock exchanges that operate there. However, the financial services industry is much larger than that. It is comprised of a diverse range of companies that offer a wide array of products and services. These companies include:
While a good portion of the financial services industry is made up of for-profit enterprises, it also includes nonprofit organizations that provide a variety of different counseling and money management services to those in need. Additionally, there are a number of financial market utilities that work to support the overall industry by providing such things as clearing houses and derivatives markets as well as payment systems such as real-time gross settlement or interbank networks.
Many financial services companies offer a lot to their employees in terms of benefits, which can be a big draw for those looking to pursue a career in the field. These perks can include things like tuition reimbursement, health insurance and retirement plans.