A key component of the global economy, Financial services encompasses a broad range of service sector firms that provide money management, including credit unions, banks, credit-card companies, insurance providers, accountancy corporations and consumer finance companies. Financial services support investment, production, savings and other economic activities that promote the growth of a country, leading to economic prosperity for all.
Banks are the foundation of financial services, holding customer deposits and lending funds to customers. They earn revenue through fees, commissions and methods like the spread of interest rates between loans and deposits.
The consumer financial services market includes mortgage lenders, personal and student loan providers and credit card firms. It also includes payment services, which allow people to pay for goods and services with plastic in exchange for a percentage of the transaction total. Examples include debit cards and Amazon Pay.
Technology has had a profound effect on the financial services industry, making it easier for employees to access data and make better decisions. It has also increased the efficiency of many processes and lowered costs.
As with all industries, breaking into the financial services sector requires a strong network and a willingness to learn. Entry-level positions are usually focused on training and development with opportunities to gain hands-on experience within a team.
One of the most significant recent developments in the financial services industry is the rise of artificial intelligence (AI). While it has been used to streamline and automate tasks for decades, its applications are growing in scope. The financial sector is one of the most likely to benefit from recent advancements in AI, with benefits that extend to business operations, decision-making and customer experience.