Financial services are the pillars of the economy that allow people to save and invest in projects. They also give individuals the ability to purchase goods and services with credit cards or loans. They also support business growth by providing budding entrepreneurs with capital to help them expand. The financial sector is made up of many different industries including banks, credit unions, investment houses, insurance companies, consumer finance companies and mortgage lenders.
The industry is often highly competitive and fast-paced, with many employees working long hours. In addition, many roles are regulated and require a professional licence, which can be an expensive and time-consuming process. Additionally, employees may need to take out specialist liability insurance cover such as errors and omissions (E&O) for the duration of their careers, and additional training and qualifications may be required.
A strong financial sector typically leads to a healthy economy, with consumers able to spend more money, encouraging businesses of all sizes to flourish. It also means that individuals are better placed to cover unexpected expenses, ensuring that they can continue to enjoy their lifestyle and pursue their goals. A weak financial sector, on the other hand, can quickly bring the entire economy down, causing people to lose confidence and reduce spending.
As such, the financial services industry is incredibly important to all aspects of society. However, there are some specific areas within this sector that are particularly vital for the economy, such as credit and debit card services, debt resolution, global payment providers like Visa and MasterCard, stock and derivative markets, and financial market utilities.
Credit cards are a very popular financial service, with more than one billion people globally holding at least one. These services are largely regulated to ensure that customers are protected, and many providers offer loyalty programmes and rewards to encourage consumers to keep using their products. In terms of regulation, these services are typically overseen by the government, with individual countries offering different levels of oversight.
As well as providing an essential service to the economy, financial services also create jobs. The sector employs many people worldwide, from bankers and stockbrokers to accountants and tax advisers. Moreover, the industry supports a range of micro-enterprises, providing budding entrepreneurs with the capital they need to grow their businesses and create more jobs in their local communities.