The Financial Services Industry
Financial services provide individuals with a variety of different products and services to help them manage their money. They include banks, brokers, mortgage lenders, insurance companies and more.
The industry also encompasses many other financial sectors, including securities traders, investors, and Wall Street. These services are provided to individuals, businesses and even the government.
There are four main areas of the financial services sector: banking, investment, insurance and asset management. These sectors are broken down into subsectors and each requires specific knowledge and abilities.
Banking – Banks are the largest component of the financial services industry, providing loans and deposits. They earn their revenue through fees and commissions paid on loans and deposit accounts.
Investment – The second largest component of the financial services industry, investment banks offer services like mergers and acquisitions, underwriting debt and equity, and retirement planning. They often have their own research departments to assist clients and maintain a public stance on certain industries or securities.
Insurance – The third largest component of the financial services industry, insurance companies offer services like life and health insurance. They also have their own brokerage departments to buy and sell insurance policies on behalf of their customers.
Asset Management – The fourth component of the financial services industry, asset management companies handle pensions, insurance assets, hedge funds and mutual funds. These companies need to have the proper skills and knowledge to ensure that they provide their clients with the best service possible.