Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, consumer-finance companies, credit-card companies and stock brokerage firms. The industry also includes insurance companies, asset management firms, investment funds and individual managers, as well as accounting and tax preparation services.
The sector is a vital part of any economy, and it’s also an increasingly complex area. Rapid innovation is shaking up the traditional players and forcing them to think differently about their business models. And 2023 is poised to be a pivotal year, with the potential for new disruptions and opportunities for those who are ready to embrace change.
The world’s financial systems are critical to the wellbeing of people, families, and communities. A strong financial sector is essential for sustainable development and economic growth, and a failing system can have devastating consequences. That’s why we need to build a future where profits and purpose are inextricably linked and support the people who use these systems every day.
Financial services can seem all-encompassing today, as banks offer checking and savings accounts as well as mortgages and auto loans. But it wasn’t always this way. Before the 1970s, each segment of the industry remained largely within its own niche. Banks focused on deposit-taking and lending, loan associations focused on borrowing and reinvesting savings, and brokerage companies offered consumers the chance to invest in stocks and bonds.
Now, however, technology and changing customer expectations are reshaping the financial services landscape. For instance, digital gig work is attracting consumers who once relied on traditional brick-and-mortar jobs and cutting into income streams that have long provided revenue for many credit card issuers, network operators, and processors.
At the same time, a reshaping of regulations and an increasing focus on transparency mean that the industry is becoming more accountable to customers than ever before. This has led to a new breed of digitally native challengers that are taking aim at the traditional players and shaking up the status quo.
For those who are looking for a career in the field, there is never been a better time to consider a role in financial services. Whether you’re interested in working with data or building relationships, there is a role for you in this dynamic and exciting industry. The skills and knowledge that you develop as a professional in this space can serve you for the rest of your life, no matter where you go in the future.