The financial services industry encompasses a wide range of businesses. Some examples include banks, credit-card companies, and credit unions. However, financial services also include other businesses, such as insurance and wealth management. Financial services also provide employment opportunities. Regulatory bodies also play an important role in this industry. Regulatory bodies are responsible for ensuring that financial institutions follow regulations.
While traditional financial institutions are building general offerings for the market, fintech startups are building products and services that are tailored for specific audience segments. This is important because many underserved markets do not have access to the financial services they need and cannot leverage the solutions that are right for them. For example, only 48% of small businesses have access to all the financing they need, and 33% were denied credit because of age or credit history. Using fintech to improve the financial services experience of these underserved segments is the answer to many substantial problems.
To track the latest Fintech innovations, check out the Fintech 250, a list of 250 of the most promising companies in financial services. This list features companies that are disrupting traditional banking services and are redefining the future of finance.
Traditional financial institutions
The traditional financial institutions in Nigeria provided the community with some of the basic financial services today. Although their scope and management were less refined than those of modern banks, they were widespread and were used for loan schemes, savings schemes, and mutual-aid schemes. These institutions were voluntary and simple, and they did not have the administrative resources of larger institutions.
As a result, traditional financial institutions must reinvent themselves to remain relevant and meet customers at multiple touchpoints. These days, consumers expect personalized service and convenience when it comes to banking. This is why they must focus on making customer interactions as seamless as possible. This means removing barriers to achieving financial security.
Regulatory bodies for financial services oversee the activities of banks and other financial institutions. The main purpose of bank regulation is to promote market transparency by imposing various guidelines, regulations, and requirements on the banking institutions. These requirements help ensure that consumers receive safe, quality, and affordable banking products. Regulatory bodies are responsible for ensuring that banks comply with the laws and regulations set by their respective countries.
Regulators may also publish data and press releases. In addition to these publications, regulators also publish speeches and press releases.
Careers in financial services are highly sought after, and there is a wide range of options available to people looking for employment. These positions are available in government agencies, financial institutions, and private firms. Most require good math and computer skills, as well as integrity and leadership skills. Some companies also offer graduate training schemes.
The digital asset industry is experiencing a hiring boom, making it one of the fastest growing sectors in the financial sector. According to the latest data, one in 10 of the latest job openings in the sector are in crypto-related fields. These startups pay competitive salaries, and many are led by ex-bankers. For example, cryptocurrency trading platform Amber recently raised US$200 million from investors, making its valuation over US$3 billion. As the company expands, it needs to increase its headcount globally and expand its presence in Hong Kong.