Financial services are economic services related to finance that encompass a wide range of industries. These include depository institutions (banks), providers of investment products, insurance companies, credit and financing organizations, and the global payment services that facilitate transactions between individuals or entities.
The broad spectrum of financial services makes it difficult to determine the right path for you when considering a career in this industry. There are a number of different jobs that you could pursue, from bankers and hedge fund managers to loan officers and debt counselors. This sector touches everything, from small community banks to multinational corporations.
One important way to understand this sector is by thinking of it as a service and not an end good. For example, a mortgage is a financial good, but the process of getting that mortgage (including the inspections and appraisals) is a financial service.
Insurance is also a financial service, and it protects consumers from unforeseen events. An example would be an insurance policy that covers the cost of rebuilding a home after a fire. Private equity funds and venture capital providers also provide a financial service by providing investment capital in exchange for ownership stakes or profit participation.
Financial services are a vital part of NYC and the world, and it’s essential to understand how they function and what role you can play in them. Fortunately, this is an industry where the work can be as rewarding as it is challenging. You can find opportunities to advance quickly, and many firms are known for promoting from within based on merit.