Financial services encompass an enormous amount of territory, from deposit-taking and loan making to securities trading, mortgage lending, debt resolution, financial planning and advice, investment banking, estate services and a variety of payment system infrastructures (including global payments, money transfer systems and credit card networks). The industry also includes insurance and insurance-related services such as life and non-life insurance, reinsurance and all forms of risk assessment and management. It also extends to wealth management, private equity and venture capital services, asset management, trust and agency services, family office services and all forms of financial and market infrastructures.
Many of these services depend on a high degree of trust. Purchasers of life or property insurance expect the provider to be around when they need to claim; investors in stocks and bonds rely on the fact that their investments are fairly priced, that their accounts and documents are secure, and that they will receive good service when they have questions. The industry therefore places a heavy emphasis on building and maintaining a strong reputation, as well as being subject to a great deal of government oversight and regulation.
People in this sector often work long hours, but the pay is generally very good and the jobs are relatively secure. In addition, many firms are heavily invested in the professional development of their employees and provide on-the-job training that can pave the way for advancement. Another benefit of working in the field is that it can be easier to relocate with a position in this sector than with some others, because the services are so widely used and essential.
The nature of the business means that these companies must operate globally, across time zones and borders. This has forced the industry to develop leading edge solutions that ensure high availability and reliability, especially in times of crisis, such as natural disasters or terrorist attacks. The industry is also highly technological, using sophisticated software to manage massive volumes of data and facilitating transactions at lightning speed.
Because people use these services at pivotal moments in their lives, the sector is based on a lifecycle model; banks and other providers must understand what products or services customers will need at different stages in their lives. This is a big reason why many financial services companies offer data analytics to their clients, so that they can anticipate future needs and provide appropriate products and services at those critical points.
This is also why so many jobs in this sector require a bachelor’s degree, although it is not unheard of for someone with relevant professional experience to be hired without one. People often start out their careers in this industry as interns or assistants, learning on the job. They can then move into positions as junior or senior analysts, then junior or senior advisors. It is also common for someone to switch roles within the same company, but this will depend on the organization and its culture as well as the skills set of the individual person.