The financial services sector is a key component of the global economy. It helps businesses grow and consumers save. Financial services are also essential to maintaining healthy economies in many countries. There are a wide range of jobs in the financial industry. But there are a few things to keep in mind before beginning your career.
First, consider the different types of financial services. These include banking, investment and insurance. Banks are institutions that hold money and lend it out to customers. They provide loans, credit facilities and deposits. Typically, lenders give the money back with interest.
In addition, there are payment system providers that accept accounts settled through checks, electronic funds transfers and credit cards. Similarly, there are payment recovery services that help recover money paid to vendors.
Financial services are regulated by a number of agencies. Regulation is meant to protect the consumer. For example, the Federal Deposit Insurance Corporation (FDIC) insures regular deposit accounts. This reassures individuals and businesses that their finances are secure.
Another important sub-sector of the financial services industry is insurance. Many insurance companies offer coverage for liability, property, and injury. Some provide life insurance. Other insurance agencies, such as reinsurers, protect insurers from catastrophic losses.
Another aspect of the financial services industry involves the stock market. Investors can gain a higher yield by purchasing stocks and other securities. Investment companies and private equity funds are another source of capital for the industry.
Insurance agents are responsible for evaluating the risk of insuring clients. They also shop for insurance policies, search rates, and provide wire transfer services.