Financial services are all the things that you and your bank, broker or mortgage lender do to help you manage money. That includes buying and selling stocks and other assets; trading in the foreign exchange market; saving for a mortgage, college or retirement; and getting credit cards and loans. The industry also involves insurance companies, securities traders, investors, Wall Street and many others. And it doesn’t just serve individuals like you; it also provides banking services to small businesses, large corporations and the government.
Some financial services firms specialize in one sector; for example, an investment bank may focus on helping businesses raise money. These banks do that by underwriting debt and equity, and assisting with mergers and acquisitions. Other financial services companies work to provide specialized products for high net worth individuals and institutions. Examples of these include asset management, structured finance and private equity.
Finally, other financial services firms make it easier for people to buy and sell goods and services by providing payment services. These include facilitating electronic funds transfers, issuing credit and debit cards and managing payments systems. These companies also provide liquidity solutions, such as providing money to those who need it (like a cashier’s check or certified check), and debt resolution services by negotiating with creditors for less than what is owed.
The financial services industry is a critical component of the economy; it helps people and companies manage their finances, invest in themselves and each other, and save for the future. While it can be highly lucrative, it’s important to consider all the pros and cons of working in this field before deciding whether it is right for you.