What Are Financial Services?
Financial services is the sector of economics that involves making, investing and managing money. This includes things like stock markets, banks and insurance.
Financial service providers are a crucial part of our everyday lives, whether we are buying coffee or an expensive new car. They also provide a valuable service, helping us save for the future, buy a home or put away funds for retirement.
The industry is undergoing dramatic change as digital distribution platforms, alternative sources of capital and a growth in outsourcing fundamentally reshape the industry. These changes are transforming the market from large one-stop shops to a range of firms competing at different points in the value chain.
Banking services – The largest sector of the financial industry, this includes everything from checking accounts to credit cards and mortgages. Most people use banks to keep their money safe and to help them borrow for specific purposes.
Investment services – This is a sub-sector of the finance industry and includes things like hedge funds and mutual funds. These are companies that manage a portfolio of assets, such as real estate or bonds, to meet clients’ specific investment goals.
Regulatory agencies – Independent organisations that oversee different banks and financial institutions to uphold transparency and ensure that they treat their customers fairly.
Financial services are a vital part of our economy, and are essential for economic development. They promote domestic as well as foreign trade, and they support backward regions to develop so they can catch up with more developed areas.