The finance industry does about what you’d expect it to do: it’s engaged in financial transactions that change the structure or ownership of an asset. If an organization isn’t involved in this process, then they are facilitating it in some way.
Interesting Facts About the Finance Industry
The unemployment rate in the finance industry is just 3.6% as of March 2014.
There are a number of different ways an organization qualifies to become part of this industry. They might raise funds to acquire financial assets in order to make more money. They might pool the risk of several other active participants in this industry to build up cash reserves through the collection of fees. They might provide a specialized service, such as a benefit program for small businesses or be actively involved in mediation.
Three Key Facts About This Industry to Know Right Now
1. Over 5.8 million people are employed because of this industry in the United States alone.
2. Employees who are members of unions within this industry make about 8% less in salary than non-unionized employees.
3. The largest group of employees in this industry in the United States, the teller, brings home an average wage of $12.20 per hour.
Takeaway: What is interesting about the structure of the financial industry is that those who make the most cash or asset changes in total value tend to be the ones who make the most money. There is certainly more risk involved with such a position over a teller who is the front line service employee within this industry, but the wage gap on average between sales agents and tellers is over $22 per hour in the United States. How much would the dynamic change if tellers could earn just $2 more per hour?
Additional Facts to Consider About This Industry
1. The Federal Reserve currently maintains a balance of $2.6 trillion.
2. Insurance companies are responsible for about 45% of the revenue within this industry, whereas security firms are responsible for just 15%.
3. The Top 50 companies in the United States are responsible for nearly 50% of the total revenues that are generated.
4. 31% of financial executives haven’t received a recent salary increase.
5. 41% of small bankers or community lending institutions say that the recession in 2008-2009 left them in a better position to compete with the Top 50 agencies.
6. Nearly 32% of all adults in the United States say that they don’t have any savings at all and live paycheck to paycheck.
7. 93% of people in a recent survey said that they were doing a reasonable job with their own finances, yet would give themselves a maximum grade of a C for their knowledge of the finance industry.
Takeaway: Knowing how to maximize the assets one has is an acquired skill that can be supplement with a natural talent for numbers. There is no doubt that finding a good partner within this industry is critical for personal and business success! That fact is reflective of the low unemployment rate and the higher average wages for specialized work. Would the dynamics of this industry change if more people could learn the skills of the finance industry on their own so they could build their own assets?