Financial services provide the building blocks of a country’s economy by allowing individuals to borrow, spend, save and invest their money securely. They also allow businesses to expand into new markets. Financial firms face intense competition, thin margins and must comply with strict regulations to survive.
A financial service is any product or service that relates to money. This includes everything from the mortgages that allow people to buy houses to the insurance policies that protect them against property damage. It also encompasses things like credit card accounts, bank deposits and wire transfers. The industry is vast, with thousands of depository institutions, providers of investment products and insurance companies, as well as a variety of other credit and financing organizations.
Careers in financial services can be lucrative, especially if you’re early in your career and willing to work hard. Many positions offer intensive training and mentoring, enabling you to gain the skills necessary to succeed in the field. They also pay fairly well, with entry-level salaries higher than in other industries.
The future of the industry is bright, as technology continues to improve financial inclusion. For example, the use of biometrics like fingerprints and facial recognition can help secure financial transactions by preventing fraud. In addition, emerging technologies can make it easier to assess a person’s creditworthiness and provide tailored financial services. These advancements are expected to increase efficiency, reduce costs, and lower the risk of financial crises. They will also help individuals and businesses avoid the temptation to seek out informal, risky financial channels.