Career in Finance
Financial services are essentially the non-financial services offered by the finance industry, that covers a wide assortment of financial institutions that handle money, such as banks, credit unions, credit card companies, investment banking firms and mortgage companies. These financial services aim at providing borrowers with money which they can use to undertake different activities such as buying homes, cars, businesses and futures. The main purpose of a financial service is to provide borrowers with loans at a lower interest rate than other lending institutions. Financial service providers are usually financial organizations, private individuals or government entities.
In general, the finance industry has two major branches, commercial and investment. The commercial sector deals with finance and banking products used to finance businesses and the purchase of assets. The investment sector is all about making investments and managing these through banks, insurance companies, venture capitalists and pension funds. All finance products that fall under the category of investment require the active participation of the borrower. This means that the financial products are primarily intended to assist the public in making investments in their own futures.
There are several sectors within the finance industry. Some of these sectors are commercial banks, government finance , mortgage banking, money management, investment banking, securities industry and non-financial services industry. The commercial banking sector mainly handles day-to-day business deals, making loans and offering financial services for commercial purposes. Government finance refers to the activities of the federal and municipal governments in support of their policies, which in turn provide public money management services.
The money management business in the finance industry includes investment banking, commercial banking, money management, pension fund management, asset allocation, financial planning, estate planning and asset protection. One of the most popular segments within this industry is investment banking. A goodfrey says that there are approximately 2 million people employed in investment banking in the US. A goodfrey says that the most notable banking function within this industry is risk management.
Many people who have been involved in financial markets in the past say that it requires long hours of sitting around waiting for information. This is a problem that most people have had to face in the past. Thanks to the advancement of technology, time and cost efficiency has become possible. Today, you can access financial information twenty-four hours a day and this is possible due to internet banking. It helps save time that would be spent talking to a financial adviser in the bank. Today, you can access financial information from anywhere as long as you have internet access.
As per the median salary for financial analysts in US today, the expected earnings are about forty thousand dollars. According to experts in finance, those who are into investment banking earn around seventy thousand dollars as a median salary. If you want to join the corporate world as a financial analyst, you will need about two years of undergraduate courses at an American university or a foreign university with a finance specialization. Some of the subjects that you may be required to study include finance, statistics, portfolio management, business studies etc.
You can also pursue specialization in banking, which can be done by taking a course in business, venture capital or private banking. Venture capital firms provide capital for early-stage companies as they feel that these companies have the potential for making it big in the future. Private banking on the other hand, is an industry where you can keep your money in a safe place without demanding the highest levels of security. However, there are still some risks in private banking. There are a lot of people who opt for venture capital, but according to the experts, this should only be chosen if one is confident about earning a six figure income and if one has no other choice but to take venture capital.
Fintech is a term used to describe any new financial idea that has the potential of disrupting the existing financial markets. The banks and finance companies feel threatened by such disruptive innovations because they might be too cheap to compete with existing players in the market. The current recession has proved that when a technology disrupts the existing market, the existing players suffer a lot of losses. Most of the financial experts believe that the time is right for financial firms to experiment with new fintech ideas. They may start small but if they are successful, then they can adopt these innovations and offer them to their customers.