Financial services are a broad category of economic services provided by the finance industry. This industry includes a variety of different businesses, including credit unions, banks, and credit-card companies. They offer financial planning and management to help people make and save money. They also help people with debt and other financial needs. For example, they help people buy homes, loans, and credit.
In the United States, the financial services industry includes companies offering everything from personal loans to mortgages. They also include insurance, consumer finance, and a wide range of investment funding. In Canada, the financial services industry has a diverse range of products, including home loans and consumer finance. In addition, the industry includes firms that offer rewards programs, such as Marriott Bonvoy. Marriott Bonvoy, for example, lets customers earn points when they spend at participating restaurants and gas stations.
Insurance can provide the capital necessary for an investor to make a profit. It can also provide savings and help a businessman mitigate risks. The government, in 1999, privatized life insurance and created the Insurance Regulatory and Development Authority (IRDA). In addition, financial services help businessmen optimize their returns and protect producers from the financial risks that come with business operations and natural disasters.
As financial services companies compete for the future, they must meet evolving consumer expectations. Otherwise, they risk losing market share to more agile competitors. There are two main categories of financial services: personal/consumer and corporate. Some companies focus on both, while others concentrate on one. Some non-traditional companies are emerging in this space, seeking to take market share from legacy banks.