Financial services are the economic and business activities related to the management of money, investments and other assets. These include banks, insurance companies, credit card companies, and stock brokerage firms.

A bank, for instance, collects deposits from customers and pooled them together for lending to people who need the money. About 10% of the deposited money must remain on hand to meet reserve requirements, but the rest can be used to make loans.

Investments, which are the main source of income for many people, are also part of the financial services sector. They can be in the form of stocks, bonds, or mutual funds. These investments provide the funds that are needed to start businesses, pay for education, or purchase other things.

Other types of investments are those that protect individuals from loss or damage, such as life and health insurance. These can be provided by companies as well as private individuals.

Some people work for a bank or other type of financial institution, while others are self-employed. Either way, a career in finance offers the opportunity to work with a large variety of people.

The most important function of a financial institution is to accept money from depositors and lend it to borrowers. The financial institutions also manage the amount of money in the economy, which is necessary to keep inflation under control.

They can also act as a central bank, regulating the supply of money in the economy. This is done through a range of policies and programs, including repo rates, cash reserve ratios, and participation in open markets.

It’s a huge industry, touching everyone from big banks to small community banks to nonprofits and even tech companies like Apple and Amazon.

You can make a lot of money in the financial services field, and many careers offer a relatively good balance between work and personal life. If you enjoy working hard and being a team player, you may find that this is the right field for you.

A major reason for the high pay is that many jobs in the finance industry require a certain level of expertise or talent, which can be attained through degrees and internships. Once you gain this experience, your salary can increase significantly over time.

Other skills that are useful in the financial services industry include computer and information technology, as it is integral to the operations of a bank or other business. It is also a vital source of information for decision making.

The world of finance is constantly changing, and you’ll need to be able to stay on top of new technology trends. Whether you’re an individual looking to improve your finances, or an executive trying to boost the value of your company, it’s crucial that you can use new tech.

In addition, you’ll need to be able to deal with customer service issues, as you’ll be dealing with customers on a regular basis. This can be a stressful job, but it’s also exciting and fulfilling.