Jobs in the Financial Services Sector
Financial services are an interesting sector on its own right. What I find interesting is the various industries that are in the financial services sector. This sector can be broken down into several smaller sub-sectors, each one focusing on a specific aspect of the financial services industry. For example, there are brokers, traders, and investors. All of these sub-sectors combined make up the financial services sector.
The economic growth in this sector affects all aspects of the financial services sector. If the economic system is growing at a rapid rate, then banks and other lending institutions will have to increase their lending rates in order to keep up with demand from borrowers and businesses. In turn, this increase in interest rates and or charges for loans means that jobs in the financial services sector will also increase. Obviously, increased employment means more income and business opportunities for those in the financial services sector, therefore boosting the economy further.
Jobs in the financial services sector range all the way from bankers to bankers' brokers. There are a lot of job roles within the banking industry. Bankers generally deal with banking operations and dealing with loans. Brokers, on the other hand, are people who assist banks by finding clients and finding the best loan deals for those clients. Both of these types of financial brokers have their own specific skill sets and they are responsible for performing those skills appropriately. They are very important to banks as they help shape the economy through their decisions.
Another facet of jobs in the financial services sector deals with investment banking. Investment banks are institutions that work with clients to provide them with capital for growth purposes. They usually deal in the buying and selling of financial instruments such as bonds, mutual funds, stocks and other investments. Those in financial services jobs deal with handling investment banking matters and providing advice to clients.
Another branch of jobs in the financial services sector deals with risk management. Risk management involves the use of financial products such as insurance, securities, and futures to protect an individual or a company from financial losses. Insurance is used to compensate for losses when an individual or business suffers damage to its property or suffers an illness. Securities also fall into the realm of risk management. They are used to purchase stock in a company and thus protect that company from financial ruin.
The finance and banking industries are not only relevant inside the United States, but across the world as well. Many countries outside the US depend on American banks for their financial needs. For example, a Swiss bank is one of the largest foreign investors in the US. It would not be surprising to see more Swiss banks to open offices in the United States to cater to American banking needs.
The financial services sector in the United Kingdom has suffered a bit during the recession. In fact, London is the financial capital of the world. As such, there are many jobs lost in London due to the reduction of finance jobs. The situation may not be as dire in other parts of the UK. In fact, there are many banks still based in the towns of Northern Ireland and Wales, even after the recent troubles in the financial sector.
The banking services sector is certainly not a dead sector. However, it may not be thriving like it once was. For one thing, it is difficult to attract top quality talent to work in the banking sector. Many talented people leave the finance to go into other fields. Also, competition for jobs is tough and getting someone right away can be tough.