What Are Financial Services?
Financial services are the firms and professionals that help people with their money, investments and assets. This is a huge industry that encompasses many different types of companies, professionals and products, all with their own role to play in the financial ecosystem.
Banks are the foundation of this industry, they take in and give out money to customers, making profits based on interest rates charged for credit and deposits. They also offer other products like money market accounts, mutual funds and mortgages.
Insurance is another big part of this industry, it offers protection for the things that matter most to us. Whether it’s our health, car or home, we all need to make sure that we are covered against the unexpected. This industry helps by offering various types of insurance policies for all kinds of needs.
Another key function of this industry is to promote domestic and foreign trade, by facilitating investment in the country and abroad. By doing this, the company can expand its operations and produce more goods to meet consumer demands, which ultimately leads to economic growth. This is made possible through the presence of institutions like factoring and forfaiting companies.
Regulatory bodies are a large part of this industry, independent agencies that oversee different financial institutions and uphold transparency. This includes the Office of the Comptroller of the Currency, and The Financial Industry Regulatory Authority. Another important aspect of this industry is asset management, which handles pensions, insurance assets and more. This is often handled by a separate firm, but some banks combine their asset management and brokerage services under one umbrella.