Financial services are an important part of any economy. They provide a means for people with money to save and invest, as well as give those who need credit access to loans that help them buy goods and services they can’t afford on their own. Financial services also help businesses obtain the funds they need to grow.
Financial service providers include banks, insurance companies, credit unions, and many other types of businesses. Some are specialized in a specific type of service, like mortgage or credit card companies, while others offer more general services like investment management or debt resolution. Still others are part of larger financial conglomerates that offer a wide range of products and services, such as investment or commercial banking.
Because of the importance of these services to the economy, they’re heavily regulated. This includes licensing, supervision and regulation that varies by country. The strength of the financial services sector is an indication of the health of a nation’s economy, as a strong financial system allows consumers to spend more and businesses to take on greater risk.
Those interested in careers in the financial services industry should know that these positions can be competitive and stressful, as they often involve meeting sales targets or quotas. Additionally, the pay structure in some positions (such as those of financial advisors) is commission-based, which can lead to higher income potential if you’re successful.