Financial services play a vital role in daily life. They help people make money, secure products and increase their purchasing power. They are also important to the economy.

The industry offers many career opportunities. For example, an insurance agent assesses the risk of insuring clients. He or she may shop around for policies, offer debt resolution services, or act as a financial consultant.

Another financial service is asset management. This is a type of financing that provides investment capital to companies. It may involve hedge funds, mutual funds, or pensions. A financial advisor or broker may buy and sell securities on behalf of a client.

Insurance is another crucial subsector of the financial services industry. This helps protect against property damage, liability, and death. Banks, insurance companies, and mortgage lenders offer several types of insurance services.

Many community-based nonprofits offer advice on money management. These organizations include American Express, which offers rewards programs for spending at restaurants or gas stations.

Some individuals have the option of purchasing a house through a leasing company. Banks and credit unions provide banking services. In addition, some companies have created their own brokerage divisions or insurance departments.

The financial services industry is expanding. This is in part due to the digitized nature of financial activity. As technology advances, more consumers are choosing to manage their finances at home.

Whether you are interested in a career in finance or are just interested in understanding the field, you need to do your homework. You’ll need to understand the different types of financial services institutions and the various roles they play.