Financial services are the activities of businesses and governments that manage money, including the inflow and outflow of funds. They help individuals and businesses achieve their financial goals by managing their assets, reducing risks, and providing debt financing. The strength of a country’s financial sector is closely linked to its overall economy.

Companies like banks, credit unions, investment firms, lending corporations, insurance companies, and consumer finance firms are all part of the financial services industry. They act as intermediaries between savers and borrowers, allowing people to put their savings into accounts where they earn interest, and they extend credit to those who need capital for a variety of reasons, such as starting a business or purchasing a home.

The financial services industry also includes private equity and venture capital providers who supply investment capital to new or expanding businesses in exchange for ownership stakes or profit participation. It also encompasses insurers who provide protection against financial loss, such as life insurance and health insurance, and property loss or damage (homeowners and car insurance). The last sub-sector is payments – companies that facilitate payment transactions between individuals and businesses in exchange for a percentage of each transaction.

Many roles within the financial services industry are entry-level and offer on-the-job training, making it a great place to start for young professionals. In addition, many firms in the financial sector are heavily invested in their employees and often encourage their staff to pursue further education and professional development.