The financial services industry encompasses a large and diverse group of companies, from banks and credit unions to insurance agencies and investment firms. These institutions provide individuals, small businesses and large corporations with the money they need to invest in their future, pay for expenses and reach their financial goals.
The field of Financial services is constantly changing, and as such, it’s important for those looking to get involved in this sector to take some time to research the many different types of positions available. Then, they can decide which sub-sector and segment within the industry they would like to pursue.
While it may seem that financial services are all-encompassing today, it wasn’t always this way. Before the 1970s, each of the segments that make up the financial services industry stayed largely within their own specialty; banks provided checking and savings accounts, loan associations offered mortgages, and brokerage companies sold investment products like stocks, bonds and mutual funds.
However, today, technology has blurred the lines between each of these sectors. As a result, the industry faces increased competition from new players that have emerged in response to technological changes. These include fintechs, digital giants that are expanding into financial services, and established financial services providers trying to stay relevant with today’s consumer demand for convenience, functionality and ease of use. Each of these players brings their own strengths, weaknesses, opportunities and risks to the table. As a result, it’s becoming more and more challenging for the incumbents to manage their mature, asset-intensive businesses while also grasping these opportunities in high growth areas.
