Financial Services Occupations

Financial services is a sector that encompasses the markets for banking, investments, insurance and the redistribution of risk. It is a very large industry and contains many different occupations. The pay isn’t vast but it is competitive, and there are plenty of opportunities to move upward in your career. In addition, working in finance offers you the flexibility to balance work and home life – and it’s often easier to move abroad with a job in this area.

The banking industry is the foundation of the financial services group, collecting savings from consumers and businesses as deposits and lending them out to others. This includes credit unions, community banks and large commercial banks. Banks earn revenue through interest charges, fees and the spread between the rates they charge on loans compared to what they pay on deposits.

Another important role of financial services is to help people manage their money. Financial planners, for example, advise on investment strategies and debt management. Investment firms purchase and sell securities, while asset managers manage pools of funds for other investors. Other types of financial services include insurance brokers and agents who match customers with policies, as well as reinsurers who underwrite and take on loan risk.

The financial services industry also comprises utilities that support the financial market, such as stock exchanges and clearing houses, derivative and commodity exchanges and payment systems. These companies help to create and deliver new financial products by studying the needs of the market. They also assist with the distribution of funds by providing services like factoring, hire purchase finance and credit cards.