A healthy financial services industry allows people to get loans for houses, cars, or education, save money for down payments and retirement, and ensures that unforeseen events don’t financially devastate individuals and families. In turn, it helps businesses grow and employs millions of workers with stable, well-paying jobs.
There are a number of different kinds of careers in this broad sector, and it’s important to understand how the field is structured before choosing your path. Financial services firms often provide on-the-job training and are known for promoting from within, based on merit rather than tenure. This is one of the many reasons it can be a great career choice for those who want to develop their interpersonal skills.
A commercial bank typically accepts deposits and lends funds to customers, earning profits from the difference between what they pay depositors and receive from borrowers. Investment banks, on the other hand, help businesses raise capital by selling shares (equity) or debt to investors, and they work with companies on mergers and acquisitions.
Insurance companies are another kind of financial service, and they protect consumers against unforeseen events by offering policies for health, life, and property coverage. These products can be very valuable, and the market is growing rapidly in emerging economies, where more and more people are moving from cash-based transactions to more formalized ones using digital tools. These new markets are a major opportunity for the financial services industry, and they’re changing the way people live all over the world.