The financial services industry includes all roles that deal with managing and exchanging money. The sector is a critical component of any economy because it allows consumers to make big purchases and save for the future. It also helps companies to obtain the funds they need to grow and expand, and it provides a framework for financial planning. A strong financial services industry and economy typically leads to higher consumer confidence and purchasing power, which benefits businesses of all sizes. Conversely, a weak financial services industry can lead to a recession or depression.

The four main areas of the financial services industry are banking, investment, insurance and credit. Banks provide a variety of services, including checking and savings accounts, mortgage loans, cash management services and credit card processing services. Investment firms, such as mutual fund companies and brokerages, offer securities like stocks and bonds. Insurance companies offer personal lines of coverage, such as home and auto insurance, and commercial lines of coverage, such as life and business insurance. Credit-card issuers, debt resolution services, global payment systems and financial market utilities all belong to this industry as well.

Getting a job in the financial services industry can be difficult because it is so competitive. If you are determined to land a position, it is important to work on building your network and taking entry-level jobs that can help you gain experience. While it may be disappointing that you won’t be the CEO of a major investment firm by year three, it is important to view entry-level positions in a positive light because they allow you to learn and develop your skills.