The Financial Services Sector is a vital component of our nation’s critical infrastructure. Recent large-scale power outages and an increase in the number and sophistication of cyberattacks demonstrate the industry’s importance. It also offers a number of career paths that can be highly lucrative, especially if you start early on and work hard.
Phyton Talent Advisors works with professionals in the industry every day, so we’ve seen firsthand how rewarding a job in this sector can be. But there are a few things to consider before making the jump into this important sector.
While many people associate the financial services sector with big banks, the industry is a lot more expansive than that. There are countless other companies that make up this sector, including investment and advisory firms, insurance carriers, credit card companies, private banking services, brokerages, credit unions, money market funds and even exchanges that facilitate stock and derivative trades.
There are also a number of non-profits that provide counseling services or money management advice. For example, the Salvation Army operates a network of branches that offer these services to those in need. While these organizations are not part of the mainstream financial services sector, they do provide a vital service to society.
In addition to the companies listed above, there are countless other businesses that provide services related to finance, such as accounting and tax filing services, currency exchange and wire transfer services and credit card machine services and networks (like Visa and Mastercard). The sector also includes private equity providers, angel investors and venture capitalists who supply funding to new companies in return for ownership stakes or profit participation.
One of the biggest benefits that financial services provide is that they allow for a greater level of economic dynamism. This is because these firms help to provide financing to companies for production activities, which then lead to an increase in employment, income, demand and prices. This subsequently leads to further investments by these companies, which then enables them to grow and increase their profits.
Financial services also play an important role in helping governments raise short term and long-term funds for revenue and capital expenditures. This is accomplished by the use of money markets and securities, such as Treasury bills and government bonds. It is also possible for the government to raise long-term funds through the debt markets by offering bonds and other securities.
Without the availability of financial services, millions of individuals around the world would be unable to obtain the products and services they need to survive. These include a checking or savings account, a credit card, health, property and life insurance policies and a safe place to save their assets. To ensure the sustainability of their business, most companies rely on financial services to provide them with the necessary financing. They also rely on these firms to manage their cash flows and provide them with the information they need to make sound business decisions.