Financial services are a broad set of tools that help people put their money to work. Consumers can invest their savings in a new technology, or borrow money to buy a car, or even an apartment. The institutions that intermediate these flows can be complex, and most countries rely on regulation to protect borrowers and lenders alike.
The most familiar type of financial service is banking. It includes deposit-taking, credit card issuing, and transaction processing. Banks also offer investment products like mutual funds and equity shares. This sector is important for both businesses and consumers, because it enables them to access capital.
Another major category of financial services is insurance. It covers a wide range of protection against risk, from health and life insurance to property and liability insurance. This helps people manage their risks and plan for the future, while also providing a safety net for unexpected events.
Lastly, financial services include credit rating agencies, which assign a numerical value to an entity’s creditworthiness. This can be used by investors and creditors to evaluate an investment. It is important for a company to have a good credit rating in order to receive long-term loans from banks.
There are several different types of careers in the financial services industry, ranging from entry-level jobs to professional positions. Regardless of what role you choose, having a strong network is key to getting your foot in the door. You should focus on finding connections that can vouch for your character and abilities, especially when applying to internships or entry-level roles. Having connections in the industry can help you get ahead more quickly, and may lead to greater opportunities down the road.