Financial services are the businesses and organizations that provide consumers or businesses with financial goods, like mortgages, loans, investment banking, and insurance. They also include the critical utilities that support these goods, such as credit card companies, payment processing firms, and real estate investment trusts. Financial services are an important part of the economy, and they play a critical role in helping individuals, businesses, and governments manage their finances.
You might think of a bank, stock broker, or mortgage lender when you hear the term “financial services,” but those are just three examples of many different types of jobs in this industry. The scope of financial services is actually much broader, and it includes everything from investment advisory to credit counseling. This industry provides essential products and services for large corporations, small businesses, nonprofits, and individual consumers alike.
The most well-known type of financial service is insurance. This is a type of security that protects against unforeseen events, such as car accidents or natural disasters. It is typically paid for with a monthly or annual premium, and it can help families afford major expenses.
Another example of a financial service is credit cards, which allow people to pay for items with money they have saved or borrowed. These services are often used by individuals to make large purchases or by businesses to make payments for inventory or operating costs. The global financial services industry is highly competitive, with established banks facing pressure to adapt to new customer demands and technology while complying with strict regulations.