The financial services industry is a vital component of a country’s economy. Its strength contributes to the prosperity of consumers and businesses, while a weak sector can drag down a whole nation’s economy. This sector includes companies that offer services like deposit-taking; lending of all types (including credit and mortgage loans); financial leasing; payment and money transmission services; securities trading and underwriting, asset management and intermediation, including insurance and pension funds.
If you’re considering a career in this field, it’s important to understand the nuances of each financial service group. For instance, family offices handle investments for wealthy families and offer advisory services. Investing in this sector can be lucrative, but it’s also competitive and requires the right people to make an impact. To get started, Pocketbook Agency recommends networking and looking for a mentor.
It’s estimated that nearly 2 billion people worldwide don’t have access to the basic financial services needed to improve their lives and take part in local economies. Many families save their money in floorboards, under their mattress or in a tin box – inflexible and risky ways to accrue and store savings. By providing access to banking, credit and investment opportunities, these families can purchase land, livestock, consumer durables and grow their businesses. Additionally, a reliable source of finance helps them manage their cash flows and reduces the need to sell assets during times of need. Financial services also include debt resolution services that help individuals and businesses get out of debt by negotiating with creditors to pay less than they owe.