Financial services enable consumers to spend money, save for the future, and invest in enterprises. They also allow businesses to borrow and expand. These services are one of the largest drivers of the global economy and help people make better decisions with their money. However, they are complicated and subject to strict regulations. This article explores the various aspects of financial services, including banking, investments, lending, and insurance.
Financial services involve a complex network of intermediation. Intermediation involves channeling cash from savers to borrowers, adding value for investors by monitoring investments, and pooling risk (e.g. by dividing the debt of many borrowers between banks and insurers). Financial services providers also provide consumer protection. They help people choose appropriate financial products for their needs, and they ensure that those products are available and easy to use.
The financial services industry is huge and consists of everything from credit card issuers to emerging challengers and legacy banks. It also includes payment companies, digital banking platforms, and the infrastructure that supports them all. As a result, it can be difficult to understand the roles within this industry. However, there are a few key jobs that anyone interested in a career in the field of finance should consider.