While many people think of banks, brokers and mortgage lenders when they hear the term “financial services”, this industry actually encompasses much more. From credit unions to Wall Street, the financial services industry includes the firms that provide individuals, small businesses, large corporations and even governments with the capital they need to grow.

These firms act as intermediaries between savers and borrowers, collecting funds through deposits (checking accounts, savings accounts, money market accounts) and lending them to those who need it for various purposes such as starting a business or buying a home. They also manage investment products for their clients and offer a variety of insurance options including life, health and property.

In addition, financial services firms provide a range of payment processing services including electronic fund transfers, credit card payments and the management of payment systems. These services are important for economic dynamism as they support the free flow of capital, facilitate market liquidity and help in the development and growth of businesses.

It is essential for the financial services sector to continue enhancing its ability to provide more sophisticated investment and insurance solutions to consumers while keeping up with increasing regulatory demands. In order to do this, it is vital that the industry invests in its employees. This is often done through the provision of on-the-job training and through encouraging professionals to pursue continuing education opportunities. Those who work in financial services are typically paid on a commission basis, which means there is little to no ceiling on their income potential as long as they continually source new customers.