Financial services are the sector that encompasses everything to do with money, from the banks that issue mortgages to the credit card companies that give you access to your funds. They’re the financial lifeline for businesses, governments and individuals. When this industry is doing well, it paves the way for all other industries to prosper, and it provides people with employment opportunities.
Financial institutions offer investment services, such as trading in stock markets, mutual funds and bond purchases. They also provide insurance services, including life, property and health coverage to protect against unforeseen events. They can even provide financial advice, such as pension and retirement planning.
Another important aspect of financial services is helping promote domestic and foreign trade. For example, factoring and hire purchase finance help companies boost their sales in the local market and expand their business abroad. They also facilitate the flow of capital into the country by ensuring that the capital market is active.
The banking sector, investment firms, credit and loan companies, asset management companies and debt collection agencies all belong to the financial services industry. The sector also includes a range of global payment services, such as wire transfers and credit and debit card transactions. It also covers the exchanges that facilitate currency, stock and derivative trades.
A career in financial services offers many advantages, such as high pay and good benefits. However, some of the downsides include long hours and stress. It’s not uncommon for workers in the industry to work 16 to 20 hours a day, and work-life balance is difficult to achieve.