Financial services help with the making, investing and managing of money for people and businesses. This includes activities such as banking, trading shares in the stock market or helping someone put money away for a rainy day. But it also encompasses a lot more.
The financial sector is the engine that drives a nation’s economy. It creates jobs, drives business and helps with the flow of cash, which in turn supports a number of other industries such as construction, manufacturing and agriculture.
While the industry is a key driver of growth, it can also be a source of instability. The sector is comprised of many different types of businesses, each with their own unique responsibilities and skillsets. It is important that those thinking of a career in financial services understand the breadth of this industry.
Regulatory bodies are interconnected with various industries, and financial services is no exception. Independent agencies are designated to oversee financial institutions’ operations, uphold transparency and ensure clients are treated fairly. Two key regulators are the The Financial Industry Regulatory Authority and the Office of the Comptroller of the Currency.
The presence of financial services enables consumers to acquire various consumer products such as cars, houses etc. through hire purchase and leasing and encourages savings. Producers are able to earn higher profits as they are able to get credit facilities from banks. Other important services include insurance and reinsurance. This enables them to minimize risks and maximize returns.