Financial services are a broad category of companies, government agencies, and nonprofit organizations that provide products or services for people to manage their finances. They include banking, insurance, investments, and real estate.
Finance is an important segment of the economy that drives a nation’s growth. When the sector is strong, a country can avoid recession and increase consumer confidence.
Banks, brokers, and mortgage lenders are all part of the financial services industry. The industry also encompasses insurance companies, securities traders, investors, financial advisors, Wall Street, and more.
Banking is the most common category of financial services. This includes handing deposits into checking and savings accounts as well as lending money to customers.
The financial sector is overseen by supervisors, who are responsible for licensing and regulating companies in the industry. They also work to enforce laws and protect consumers.
Insurance, a common category of financial services, is the protection of things like houses and cars from accidents and other unforeseen events. This includes a number of different kinds of insurance policies, from auto to health to life.
Investments are another popular category of financial services, including mutual funds, hedge funds, and more. It can be difficult to distinguish these companies from investment banks, but they all offer the same types of services: investing and managing money.
The industry requires strong math and data analysis skills. It also requires interpersonal skills, since many positions involve working with others on a regular basis.
