The financial services industry includes a huge range of companies and jobs. It is important to understand the different sectors within the industry to determine which career path is right for you.
A key sector is banking. It includes retail and commercial banking, as well as investment banking. Retail banks deal with individuals and offer checking and savings accounts, credit cards, mortgages, investments and other services tailored to individual needs. Commercial banks, on the other hand, focus on businesses and offer a wide variety of business account services, credit products, insurance and other investment options.
Other key segments include investment firms, insurance companies and the providers of critical financial utilities. These providers help channel cash from savers to borrowers, and they redistribute risk by pooling money from many borrowers into investments. They also provide advisory and intermediation services. For example, investment bankers advise corporate clients on acquisitions, while brokerage firms sell shares to investors.
The financial services sector is crucial to the economy. It provides a safety net for individuals, as well as a platform for businesses to grow and expand. However, a career in this industry can be stressful and demanding, particularly for those in the most high-pressure roles. It is also often highly regulated, which can limit growth and innovation.