Financial services help individuals and companies earn profits. They include loans, investments, banking, insurance, and more. A strong financial services sector increases the purchasing power of the economy. It also boosts consumer confidence.
Banking is one of the most important sectors of the financial services industry. This includes commercial banking, consumer banking, and community banking. Banks accept deposits from customers and then make loans to those in need. They can also attempt to sell products to existing customers.
The stock market is another key subsector of the financial services industry. Stockbrokers buy and sell shares of stocks for their clients. In addition, there are financial advisors who provide information on investment opportunities.
Insurance covers various risks, such as death, injury, and property damage. An agent assesses the risk involved in insuring a client, then shop around to find a policy that fits the client’s needs.
Financial institutions promote saving and investment. They offer credit facilities and advice on mergers and takeovers. These organizations also generate revenue through interest rates.
The services provided by financial institutions have been regulated by government agencies. For example, the Insurance Regulatory and Development Authority (IRDA) was set up in 1999.
Currently, the financial services industry is a large, complicated and diverse business. Depending on your interests, you may choose to work in this industry. To get a head start, you can apply for entry-level positions. You can then gain experience while you are still working.