The financial services industry is a vast one, encompassing everything from accounting to tax filing. It also includes wire transfer services, credit card machines and networks, debt resolution services, and global payment providers such as Visa and Mastercard. There are also global exchanges and other institutions that provide financial services to individuals. If you’re interested in learning more about this industry, keep reading! Here are some of the most important facts about financial services:
Economic impact of financial services
The financial services industry makes up 20 percent of the global economy, and it is one of the most vulnerable sectors to debt defaults, ultra-low interest rates, and other market challenges. Even if this sector is not immune to crisis, it should be able to recover after the global financial crisis ends in 2021. While traditional financial institutions still hold a large share of the market, fintech firms and digital public goods are quickly gaining popularity in developing countries. Those firms that are able to compete with fintech companies will have a better chance of serving underserved consumers.
Functions of financial services industry
The financial services industry performs a variety of functions. It helps the economy maintain a sufficient amount of funds by connecting people in need with those who have enough money to invest. This industry is crucial to a country’s economic health, as it ensures the purchasing power of consumers. Listed below are some of the most important functions of the financial services industry. Weigh your options before choosing a career in this sector.
Business models of financial services firms
As the value chain in financial services continues to disintegrate, incumbent banks face an existential threat from highly capitalized tech giants. With deep customer connections, these firms are entering the industry with a view to reinventing the way we do business. Even Google recently scrapped plans to launch Google Plex, a transaction account for its Google Pay service, despite overwhelmingly positive consumer endorsement of its innovative features. These companies’ strategies have paved the way for more disruptive models in financial services.
Trends in the financial services industry
As the financial services industry continues to undergo dramatic change, organizations must stay abreast of emerging consumer behaviors and expectations. As customers demand better experiences and more transparency from financial institutions, organizations must ensure data security and customer identity protection. By creating an environment where customers feel safe, they will be more willing to share personal information, which will increase customer satisfaction and market share. Listed below are a few trends in the financial services industry to watch out for in the coming years.
Careers in the financial services industry
There are a variety of top-tier management positions in the financial services industry, from chief technology officer to chief risk officer. If you have an eye for detail and an aptitude for problem-solving, a career in this industry could be perfect for you. In addition to the executive positions, you can apply for entry-level roles where you can learn the ropes and build your education. Below are some tips for making a career in the financial services industry.