Duitch offers this example using cryptocurrency. \u201cReceiving a token is not<\/em> a financial service. It\u2019s a good. The crypto company that facilitates storing and owning the token is a financial service.\u201d<\/p>\n\n\n\n Financial services has a broad definition because the sector is, well, broad. It includes anything from banking to negotiating insurance rates to processing a credit card transaction. However, when most people think of the industry, they usually think of the following types of financial services.<\/p>\n\n\n\n While commercial banks<\/a> provide financial goods, they also offer many financial services. For example, your checking account is a financial good but depositing money in the ATM is a financial service. Other financial services include issuing credit cards, electronically transferring money, and notary services.<\/p>\n\n\n\n Unlike commercial banks, investment banks<\/a> focus on helping businesses raise money. The kinds of financial services investment banks provide include mergers and acquisitions<\/a>, restructuring, underwriting<\/a> debt and equity, and investment management<\/a>. <\/p>\n\n\n\n\t Try your hand at investment banking in this free course from Citi. Identify a company to merge with, forecast its financials, and more.<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t \n\t\t\t\t\t\tAvg. Time:<\/span>\n\t\t\t\t\t\t5-6 Hours\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t \n\t\t\t\t\t\tSkills you’ll build:<\/span>\n\t\t\t\t\t\tComparison analysis, enterprise value, forecasting, company research\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t Investment services differ from investment banks in that this financial service is offered to individuals. This category includes things like hedge fund management, advisory and wealth management services<\/a>, and retirement planning.<\/p>\n\n\n\n Insurance is part financial good and part financial service. As a financial good, an insurance policy protects you. If your house burns down, your insurance policy will help you rebuild and replace items. Likewise, a life insurance policy can provide financial security for your family when you die.<\/p>\n\n\n\n But the insurance industry is also a financial service. The brokers<\/a> who search for and negotiate rates and the underwriters who create the policies are providing a financial service.<\/p>\n\n\n\n >>MORE: <\/strong>Best Paying Jobs in Finance<\/a><\/p>\n\n\n\n Real estate is also a financial good and financial service. The property you purchase is a good, and everything that goes into supporting that purchase (getting a mortgage, insuring the property, inspecting the home) are financial services. <\/p>\n\n\n\n Outside of these \u201ctraditional\u201d categories are financial services that can’t be neatly categorized because they are small or new. Some of these include:<\/p>\n\n\n\n Whether we’re talking about an individual, a company, or even a country, the importance of financial services cannot be understated.<\/p>\n\n\n\n The financial services industry ensures money keeps flowing, which keeps economies functioning. For example, most people rely on a loan when they buy a car instead of paying for it outright. While a car loan allows you to spread payments out over time, it also means you have more cash on hand for necessities like car insurance or groceries as well as more cash for discretionary purchases, like clothing or vacations.<\/p>\n\n\n\n If you paid in full for the car instead of using a loan, you’d still have to pay for the necessities but there’s a chance you’d cut back on discretionary purchases because you have a lot less cash on hand. Taking the loan keeps more money in your pocket so you can spend it elsewhere. Those companies, in turn, take that money and use it to grow their business, say purchasing additional stock from a vendor who then has more cash on hand to hire more employees to make more products \u2014 and so on and so on.<\/p>\n\n\n\n This additional cash flow is what helps economies grow and flourish.<\/p>\n\n\n\n Even if you only focus on the commonly thought of sectors, there are still nearly endless careers in financial services. Some job titles are obvious (investment banker<\/a>, loan officer, real estate agent), but others may not seem as apparent.<\/p>\n\n\n\n For example, Duitch notes that PayPal is a financial service because it processes money. So, someone working in customer relations or dispute resolution for PayPal is working in financial services. Likewise, a person in marketing<\/a> or business development also works in financial services.<\/p>\n\n\n\n >>More: <\/strong>Popular Careers in Finance<\/a><\/p>\n\n\n\n It\u2019s also important to note that not all financial services companies are for-profit ventures. There are just as many nonprofits that are part of the industry. Many community-based nonprofits provide financial counseling services or money management advice.<\/p>\n\n\n\n All that said, if you\u2019re considering a job in the financial services sector, you should consider what the role is and how it fits into your overall career plan<\/a>.<\/p>\n\n\n\n Duitch points out that while there are thousands of job titles across the industry, \u201cnot all pave the way for you to grow in your career.\u201d For example, if you want to become an investment banker, working as a teller at a community bank may not help you achieve your goals.<\/p>\n\n\n\n If you\u2019re considering a career in financial services, here are a few of the pros you can look forward to.<\/p>\n\n\n\n Nearly all parts of the financial services sector contribute to the overall local, national, and even global economy. No matter how small or large the company (or your role), working in this sector helps keep the economy moving and growing. \u201cWithout a strong financial services sector,\u201d says Duitch, \u201cthe economy can only go so far.\u201d<\/p>\n\n\n\n \u201cIf you can hack it in financial services, you can work in a lot of places,\u201d says Duitch. Because the industry plays a vital role in everyday life, you\u2019ll often develop excellent interpersonal skills<\/a>. From selling a product to solving complex financial issues, you\u2019ll have an extensive set of transferable skills<\/a> that will help you go anywhere you want professionally.<\/p>\n\n\n\n Like any career, working in financial services comes with its share of cons. Here are some of the downsides to consider.<\/p>\n\n\n\n While stress is often role-dependent, it\u2019s not uncommon for people in some financial services jobs to work 16 to 20 hours<\/a> a day. Work-life balance<\/a> may not be possible in these positions, and burnout is a real possibility.<\/p>\n\n\n\n\t Take your skills to the next level in this free course from New York Jobs CEO Council. Analyze the financials of a big tech company and present your findings.<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tTypes of Financial Services<\/h2>\n\n\n\n
Commercial Banks<\/h3>\n\n\n\n
Investment Banks<\/h3>\n\n\n\n
![\"Citibank,](\"https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2022\/06\/Depositphotos_535677528_L-150x113.jpg\")
\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tInvestment Banking<\/h2>\n\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t
Investment Services<\/h3>\n\n\n\n
Insurance<\/h3>\n\n\n\n
Real Estate<\/h3>\n\n\n\n
Other Kinds of Financial Services<\/h3>\n\n\n\n
\n
Why Financial Services Is Important<\/h2>\n\n\n\n
Financial Services Careers<\/h2>\n\n\n\n
Pros of Working in Financial Services<\/h2>\n\n\n\n
Part of Something Bigger<\/h3>\n\n\n\n
Great Proving Ground<\/h3>\n\n\n\n
Cons of Working in Financial Services<\/h2>\n\n\n\n
Stressful<\/h3>\n\n\n\n
![\"Two](\"https:\/\/theforage.wpengine.com\/wp-content\/uploads\/2023\/01\/chartered-financial-analyst-150x100.jpg\")
\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tFinancial Analyst<\/h2>\n\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t