Careers in the Financial Services Industry

Financial services

Financial services are the economic services provided by the finance industry, which encompasses a broad range of service sector firms that provide management and oversight of financial assets and liabilities. This industry provides critical support to consumers, businesses, and governments. It gives people the ability to access credit to purchase items they cannot afford upfront, such as homes, cars, education, and medical treatment. It also helps them save money and invest in their futures. A strong financial services sector boosts a country’s economy, while a weak one can drag on growth.

The financial services industry consists of four main areas: consumer finance, credit card companies, mortgage lenders, and insurance providers. Consumer finance includes products such as checking and savings accounts, credit cards, mortgages, auto loans, and personal loans. Credit card companies, such as Visa and Mastercard, offer a variety of credit cards with rewards programs that encourage people to spend more money than they would otherwise. Mortgage lenders offer home and commercial loans to help people buy the homes or businesses they want. And insurance providers offer a variety of policies to protect against loss (e.g., life, car, and homeowners insurance), liability, and damage to property.

While the lines between the different areas of the financial services industry used to be quite distinct, they’re becoming increasingly blurred. It’s not uncommon for banks, for example, to now offer brokerage services and credit card services in addition to their core product of depositing and lending money. This expansion has led to consolidation within the industry, with firms buying up others and merging them into their existing holdings.

There are a number of skills that are necessary for a career in the financial services industry, including a deep understanding of math and data analysis. These skills are important because the work often involves interpreting and analyzing complex information. Additionally, working in this field requires good interpersonal communication as well. People in this industry need to be able to collaborate with and advise their clients on how to best use their resources.

Ultimately, the financial services industry is about helping individuals and businesses manage their resources and make informed decisions. A healthy financial services sector enables people to get the money they need in loans for purchases, whether it be homes, cars, or education; protects them against loss through insurance; and allows businesses to expand and grow by providing them with capital to cover expenses and investments.

When financial services aren’t strong, it affects all aspects of a nation’s economy. If the economy slows down, so does employment and investment in the future. If it becomes too difficult to manage finances, a country can experience economic turmoil and possibly even a recession. With a robust financial services sector, everyone can live comfortably and pursue their dreams. To learn more about financial services, check out our Learning Center to view the Rocket Money virtual experience program. This interactive simulation is a great way for anyone interested in a career in financial services to test their skills and see if this is the right field for them.