A healthy financial services sector is essential to the world economy. It helps individuals and businesses get the cash they need in loans for mortgages, education, cars and more. It allows savers to earn a return on their money and protects people against financial disaster by providing insurance. Its players channel cash from those who have it to those who need it, redistribute risk by pooling assets and liabilities, and add value through the use of technology.
The sector is a broad one that covers a range of professional firms, including banks, credit unions, building societies and credit cooperatives; mortgage bankers and brokers; credit-card companies; and investment funds, pension funds and private equity funds. It also includes a host of other players engaged in financial intermediation, such as credit-rating agencies and asset managers. In some countries, the sector is overseen by independent regulatory bodies that license and regulate different parts of the market.
There are a number of ways to start a career in the field. A degree isn’t always necessary, but it can help a person stand out from the competition and open the door to more advanced roles. Many people break into the industry through internships, and this is a great way to learn the ropes.
Once they have a few years of experience under their belts, financial services professionals can expect to be paid in the region of PS45,000 per year, with potential to reach the high five figures. The industry is often a bit less competitive than other areas of the finance world and the environment is more team-oriented.
As the world becomes more and more global, the demand for skilled workers in the sector is expected to grow. This is mainly because people are moving from traditional banking to digital alternatives. In addition, more and more affluent people are seeking advice on how to best manage their investments and finances.
While there is a wide variety of jobs in the sector, not all of them pave the way to higher positions. Duitch notes that starting as a teller or a junior investment banker is unlikely to lead to becoming a senior executive in a major corporation.
There are, however, a host of other opportunities in the sector for those with the right mix of skills. The biggest financial services companies provide extensive training, and a successful career in the industry often depends on being able to think fast, act quickly and have strong interpersonal skills. The ability to work well under pressure and meet strict deadlines is also essential. In the end, working in financial services is an extremely rewarding and challenging job that can be very lucrative for those who can do it well. It just takes some planning to find the role that is a good fit. The plethora of opportunities can be overwhelming for someone considering a move to the field. This is why it is important to carefully consider the type of role that will provide a person with the right mix of challenges and rewards.