The health of many countries’ economies is largely determined by the strength of its financial services sector. This sector is typically thought of as Wall Street and the stock market, but it also includes a wide range of other activities such as money markets, credit unions, mortgage banks and investment firms.
One of the most well-known types of financial services is banking, which involves accepting deposits and extending loans to individuals and businesses. Banks usually offer checking and savings accounts, which earn interest, as well as a number of other financial products such as mortgages, credit cards and business loans.
Other types of financial services include insurance and pensions. Insurance companies provide protection against financial loss, such as death or injury, property damage and liability. Pension funds help individuals plan for retirement. Companies also use financial services to manage their investments and cash flow. They do this by using a variety of instruments, including stocks, bonds, mutual funds and derivatives.
A growing area of the industry is digital finance. This involves bringing together traditional and emerging technology sectors to deliver innovative financial services products. The financial services industry is a global, diverse and complex business. It includes thousands of depository institutions, providers of investment products, insurance companies, credit and financing organizations and the providers of critical financial utilities.
A career in financial services can be very rewarding. It is an in-demand field with a lot of job security. In addition, jobs in the field tend to be flexible, so workers can move between positions and locations if they wish.