Financial services is the industry that encompasses banks, stockbrokers and mortgage lenders, but it also includes insurance companies and securities traders. It includes all activities that help channel cash from savers to borrowers and investors and also redistributes risk. For example, banks take on the risk that borrowers won’t repay loans, while investors can diversify their risk by buying shares in companies.
Financial services are important to the economy because people with money save it and borrowers use it to buy goods and services. The sector is regulated to ensure that companies don’t use their customers’ money illegally or cheat on them. The global financial crisis in 2008 showed that the industry is not without its faults. But the recovery is encouraging, and more and more companies from other sectors are entering the field.
A career in the financial services industry offers good pay, excellent benefits and a variety of job options, and it’s easier to find a position than you might think. A degree is not always necessary, but you’ll need to have a combination of hard and soft skills to succeed. Many businesses offer on-the-job training and other opportunities to keep employees up to speed with new tools and trends.
Companies like Amazon and Apple are blazing a trail for non-traditional financial services providers, and their efforts to enter the market are being followed by companies from totally different industries. The trend toward banking-as-a-service is enabling a wide range of businesses to make use of financial services without having to maintain their own back offices and infrastructure.
For example, some retail companies have been experimenting with offering their own credit cards, while others have begun to handle their own accounting services. This is a clear sign that the lines between traditional financial services and other sectors are becoming blurred.
In the past, big banks dominated the financial services industry, but federal regulations kept them from offering a broad range of products that consumers wanted. As a result, consumers moved their business to other firms, and the industry became more fragmented. But consolidation in the industry is now allowing larger companies to offer a wider array of services, and smaller firms have been bought out.
Providing financial services is an extremely complicated job, and it requires a lot of expertise. It’s an industry that is constantly changing, and that makes it a great place to find a challenge and a chance to grow your career.
Whether you’re working in deposit-taking, lending or investing, it’s important to have the right balance between customer service and data analytics to meet the needs of today’s discerning consumers. The best candidates are self-motivated and eager to learn the latest tools and techniques. They have strong communication skills and the ability to work well under pressure. If you’re looking for a challenging and rewarding career, contact Phyton Talent Advisors to learn more about open roles in the financial services industry. Our recruiters are experts in their fields and can connect you with the best jobs.