Types of Jobs in the Financial Services Industry

Financial services refers to the industries and businesses that provide investment funding, banking, credit-cards, insurance, money management, and securities. These are the backbones of the economy and are crucial to a country’s financial stability. Financial services companies are typically for-profit ventures, although some nonprofits also offer career counseling or other services related to money management.

The industry has many jobs available, and some people find it challenging to determine their ideal career path within the field. A career in financial services can open doors for you, but it is important to know what kind of job you want before getting started. A clerical job at a bank, for example, will not prepare you for a position as an investment analyst or banker.

Banking is an essential part of the financial services industry and encompasses many different types of jobs. Financial services include accepting deposits and lending funds to borrowers for various purposes, including starting a business or buying a home. It can also include cashing checks and electronic fund transfers, notary services, and debt resolution. A commercial bank can also act as an insurance agent and sell insurance policies.

Investment banks are a distinct category of financial services and focus on helping businesses raise capital by underwriting debt and equity. They can also perform mergers and acquisitions for clients and advise them on restructuring and investment strategies. Many large banks now have a division that focuses on this type of activity.

Credit-card companies and other credit-mechanism providers are another part of the financial services sector, and they help individuals manage their finances by providing credit cards and facilitating debt payments. These firms are also involved in global payment systems and can facilitate stock, derivatives, and commodity trades.

A specialized area of financial services is asset management, which includes managing and investing assets for clients. This can include everything from a private portfolio to large hedge funds for wealthy individuals and corporations. Some asset-management firms specialize in specific areas, such as real estate or commodities, and others may focus on a particular region or market.

Insurance is a financial good, and it’s also a service. For instance, an individual can purchase life, property, or auto insurance to protect themselves against unforeseen events. The underwriters who create the policy, brokers who search for the best rates, and insurance agents who explain the details are all a form of financial service.

The wide range of jobs available in the financial services industry makes it a great choice for many people. The salary range can be high, and working in this industry teaches many valuable skills. Having strong interpersonal connections is especially helpful in this field, and it isn’t uncommon for people to work in the same industry for their entire careers. This can make for a tight-knit community and a lot of opportunity for growth. However, Duitch warns that not all jobs in this industry pave the way for success in the long run, and it’s often not as lucrative to stay in a job that you don’t love.