The Financial Services Sector
Financial services is a broad and varied sector that impacts everyone in big and small ways. It includes everything from banks to hedge fund managers, and even PayPal.
There are two main types of financial services: financial goods and financial services. A financial good is something that helps you or a business manage money, such as a mortgage. A financial service is something that supports the purchase or use of a financial good, such as the inspection and appraisal for a mortgage or the insurance policy for your car.
Commercial banking is a type of financial services that provides bank accounts and loans to individuals and small businesses. It also provides cash management services and equipment financing.
Investment banking is a separate type of financial services that focuses on helping businesses raise capital. It also deals with mergers and acquisitions, underwriting debt and equity, and restructuring.
Another subsector of the financial services industry is insurance, which provides protection against death, disability income, property loss or damage, liability and lawsuits. It also offers health insurance and retirement plans.
Aside from these categories, the sector also encompasses payment providers and merchant acquiring companies. They issue credit cards, electronically transfer funds, and process debit and credit card transactions.
A successful career in the financial services sector requires a diverse set of skills, from math to data analysis to soft skills such as teamwork and communication. A degree is often not necessary, but it can help you advance in your career.