The Financial Services Industry

Financial services

Generally, financial services are economic activities that help individuals, firms and governments to meet their monetary goals. This industry encompasses a huge range of business sector firms, including banks, credit unions, insurance companies and brokerage houses. Financial services also include non-profit organizations that provide counseling and money management advice. While the financial services industry seems all-encompassing today, it wasn’t always so. In fact, before the 1970s, each section of the industry more or less stuck to its own niche. Banks offered checking and savings accounts, while mortgage associations provided home loans and brokerage companies provided investment opportunities.

The role of financial services in a country is important as it promotes the growth of all sectors of the economy. The presence of these financial services ensures more production which leads to economic dynamism and higher standard of living for the population.

Many families in the developing world save their hard-earned money in financial institutions to avoid losing it. Without these institutions, families often store their savings under the floorboards, in containers or in a safe, an inflexible way to accumulate and access funds. Moreover, poor families can use their savings in financial institutions to purchase land, construct or improve their homes, buy livestock and consumer durables, as well as start small businesses.

For those interested in entering the field of financial services, it is vital to remember that this is a highly competitive industry. It isn’t uncommon for professionals in this industry to burn the midnight oil in order to make headway in their career. Moreover, those who do well early on in their careers are often rewarded with higher salaries and better benefits.