GlobalEDGE – The Four Types of Financial Services

Financial services are any type of help that businesses need related to managing money or assets. The sector encompasses a wide range of companies, including credit card companies, banks, investment firms, and even insurance providers. GlobalEDGE outlines four main types of financial services:

The industry is extremely important to the overall health of a nation’s economy. A strong financial service industry typically means consumers have more spending power, which in turn creates more jobs and fuels business growth. In the flip side, a weak financial sector can bring an entire country down into a recession and potentially even a depression.

There are a variety of different jobs in the financial services industry, and it is important to understand the differences between each one to find the right fit for your career. Some key points to remember are:

Investing – An activity in which an individual manages assets (money, stocks, etc) on behalf of others for the purpose of meeting specific investment goals. Private banking – A division of financial services that provides exclusive bank services to high net worth individuals.

Financial deregulation in the 1990s allowed for a proliferation of multi-service financial conglomerates that offered everything from investments to mortgages. This also enabled big technology firms to enter the market, reducing costs and creating efficiencies. As a result, the lines that once separated these sectors have become blurred. This trend will only continue as customers become more sophisticated and are able to manage their own finances.

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