Financial services is the industry that deals with the flow of money and helps consumers or businesses obtain financial goods like loans, credit cards, investment portfolios, etc. It also includes payment systems that settle transactions using credit or debit cards and electronic funds transfers. Companies providing these services are called financial institutions.
The most familiar type of financial service is insurance; it provides a safety net for people when they have to pay for large expenses. Another common type of financial service is banking, which offers checking and savings accounts as well as lending. Financial services are important because they help ensure a steady flow of money to the primary, secondary, and tertiary sectors of the economy. They also help people save for retirement, buy homes, and start businesses.
As the economy grows, it’s important for financial services to grow with it. That means developing new products and expanding into countries that aren’t yet well-developed.
Despite the current challenges in the industry, the future looks promising for financial services. The stock market is recovering from its low point from 2008 and there are signs of economic growth. Additionally, a number of regulatory bodies have been established to monitor financial institutions and uphold transparency.
The two biggest trends in the industry are specialization and globalization. Banks are offering more services to their customers than ever before. This allows them to compete with larger financial conglomerates that offer a wide range of products. In addition, many financial services firms are taking advantage of technological advances to expand their reach. For example, mobile phones are being used to provide access to financial services in remote areas where clean water and sanitation are limited.