Financial services is an industry that includes a wide variety of companies. It also includes government agencies that regulate the industry and provide oversight to financial institutions.
The industry encompasses a broad range of businesses that manage money, including banks, credit unions, securities trading companies, insurance companies, accountancy firms, and consumer finance companies. It also includes government-sponsored enterprises, such as those that provide mortgages.
There are three main types of financial services: deposit-taking, lending and investment. The first provides services to savers, such as savings accounts, certificates of deposit and savings bonds. The second makes it possible for borrowers to get loans by accepting deposits and making them into investments.
Other kinds of services include payment systems, which enable people to make payments through credit and debit cards, bank drafts and electronic funds transfers. The third type provides trade and foreign exchange.
Some of these services also involve providing advice, which can be in the form of financial planning or investment management. There are also many different sub-sectors within the financial services industry, from Wall Street to community banks and nonprofits.
A strong and vibrant financial services sector is essential to economic growth, as it increases consumers’ ability to borrow for large purchases. This can improve a country’s economy and allow people to save more.
In addition to a diverse range of job titles, the financial services industry also requires a lot of interpersonal skills. Having the right mix of hard and soft skills will ensure you have the best chance of success in this career.