Financial services are a wide industry encompassing everything from credit cards to savings accounts, and investment and money management. It’s an important area for the economy and there are many careers within it, both traditional and emerging.
The sector comprises thousands of depository institutions, providers of investment products, insurance companies, and credit and financing organizations. It also includes the critical financial utilities that support these functions, such as central banks, commercial and retail banking networks, payment systems, and so on. Financial services firms also include conglomerates that have multiple businesses in the financial industry, such as bank holding companies with credit card, investment banking, and other divisions.
These types of organizations offer sophisticated financial products for high net worth individuals and families. These may be structured finance products or complex derivatives designed to meet specific investment objectives. Often, these products are not standardized and it can be difficult for consumers to compare alternatives.
The goal of financial services is to create greater economic prosperity by enabling people to make better choices about how they invest, save and spend. When people have control over their personal finances, they’re more resilient to life’s ups and downs and are better able to save for the future. This in turn, has a positive impact on society as a whole. For this reason, it’s vital for both government and private financial services companies to continue working together to build customers’ financial wellbeing. This includes reducing the taboo around talking about money and breaking down barriers to accessing financial services.