The Financial Services Sector
Financial services are an important part of a country’s economic well-being. They ensure a free flow of capital and liquidity in the marketplace, which helps boost production and profits.
The industry is a wide and varied one, with professionals in nearly every area ranging from bankers to securities traders to hedge fund managers. Its impact isn’t limited to the big banks and Wall Street firms, but also includes community banks and even nonprofits.
Banking – Providing checking and savings accounts, mortgage loans and personal loans to customers. This sector also provides debt resolution services for people with outstanding bills or credit troubles, and payment service providers that allow sellers to accept credit cards and other forms of payments.
Brokerage – Selling investment products such as stocks, bonds and mutual funds. These companies may also sell insurance policies or provide financial consulting.
Commercial banking – A large portion of the industry, this segment services businesses. They offer loans and other financing options to help a company grow.
Consumer finance – This segment of the industry handles credit cards, mortgage lenders and other services to help consumers pay for things like cars or college tuition. It also offers services that help people invest their money in real estate and other assets.
There are four main types of professional firms that make up the financial services sector: banks, brokerages, securities firms and insurance underwriters. They all provide different services and require different knowledge and skills to handle.