Breaking Into the Financial Services Industry

Financial services

Financial services are the economic services provided by the finance industry, which encompasses a broad range of activities, from banking and investment management to credit-card companies and payment processors. The term is most commonly applied to the major players in the financial sector, including commercial banks, credit unions and savings institutions; building societies and mortgage banks; insurance companies; and other companies engaged in financial intermediation, such as financial leasing, securities brokers and dealers, and money market and capital markets firms.

The evolution of the financial services industry has seen a blurring of the lines between different sectors, with companies merging and acquiring one another to expand their range of products and offer more comprehensive packages to their customers. For example, the Gramm-Leach-Bliley Act in the United States, which repealed the Glass-Steagall Act, allowed banks to begin offering investment, commercial banking and insurance services together. This helped to fuel the home buying craze in the 1990s and allowed financial conglomerates to take advantage of the growing need for mortgages, investing options and insurance coverage.

Historically, the main task of a financial service company was to pool funds from depositors and then lend those funds to borrowers. These companies would receive a commission on each loan made. For this reason, many of these companies grew to become very large. In fact, many of these giants were able to use their size and strength to manipulate the economy, inflating asset prices and lending standards to create the housing bubble that nearly brought down the world’s financial system in 2008.

Today, however, it’s not as easy for newcomers to break into this industry as it once was. It can still be done, but a strong network is key to getting an interview and breaking into the field, especially for junior roles like underwriting or research. This is why it’s important to spend time cultivating your network and making connections that can vouch for your character and abilities.

Aside from networking, a good way to get into the financial services industry is through internships or entry-level positions. This will allow you to gain hands-on experience in the field and see if it’s really what you want to do for your career. It also helps to have a mentor who can give you advice about the industry and guide you through the career path that will be best for you.

There are many different jobs in the financial services industry, from research and analysis to underwriting and advising. Some of these jobs can be quite lucrative, but it’s important to understand the full scope of responsibilities and requirements before applying for any position. Also, it’s vital to remember that the financial services industry is very volatile, and your career could be at risk if you are not prepared. This is why it’s important to make sure you have a solid plan and to follow it through to the end. This will help you to build a successful career in the financial services industry.