Financial services is the broad field that encompasses everything from banks to insurance, payments and digital banking technology. It is a diverse sector that impacts people in big and small ways, from hedge fund managers to community banks.
It is a competitive industry and one that only takes people who are likely to flourish in their roles.
If you’re looking to pursue a career in this sector, you need to carefully weigh the pros and cons before making a decision. The financial services industry is one of the largest in the world, and it can be an excellent place to build a thriving career.
The key to succeeding in this field is being able to communicate clearly, understand your customer’s needs and predict their preferences. It’s also important to have strong interpersonal skills, explains Ryan Duitch, president and CEO of Arro.
Whether you want to work in a bank or in a nonprofit, there’s no shortage of opportunities in this field. You can even find roles in startups that are transforming the finance world.
While it’s easy to get swept up in all the buzz, there are several things you need to know about the financial services sector before taking the plunge. First, a definition of the term financial services is necessary.
According to the IMF, a financial service is an activity that involves the transfer of funds from one party to another. This could be as simple as a payment system provider accepting and transferring money from a consumer’s bank account to another’s.
It can also be a company’s ability to provide its own investment products and insurance. For instance, an insurance company might offer a policy that protects you from loss when you purchase a car or house.
Some companies are able to integrate all their services within one holding company, while others maintain separate brands and independent divisions for each product. For example, a bank might have an insurance business, an investment business and an asset management division.
These firms often have large data sets and must be able to manage them effectively. The most successful banks use this data to personalize their interactions with customers, deliver more targeted offers and provide better products.
The presence of a strong financial services sector is vital to the economic prosperity of a country. When the sector is robust, consumers will have more confidence in their finances and will be more likely to save, borrow and spend, which can lead to faster growth.
For the poorest in society, a lack of access to basic financial services can be a major barrier to moving out of poverty and onto a more stable economic path. Increasing the availability of these services is a top priority for us, and we advocate for regulatory and legal changes that support their inclusion.
We believe that financial inclusion can be a critical pathway out of poverty for hundreds of millions of people. The development of new technologies and changes in national policy are clearing away some obstacles that once kept these services out of reach, but tough challenges remain.