Financial services are a variety of industries that provide advice on the proper handling of money and investments. A commercial bank, for example, can guarantee a customer’s check and provide credit facilities. Other financial services include underwriting debt and equity for the public and private sectors, and advising companies on mergers and takeovers. In addition, structured finance and investment management firms develop complex products for institutions and high net worth individuals.
These companies provide services to help people and organizations raise funds and redistribute that money in the most profitable way. Some of these financial services include the provision of loans, investment management, insurance, and consumer finance. Financial services also include a variety of securities, such as mutual funds, which can be used by the public to increase buying power and improve the economy.
Another type of financial services is debt resolution, which helps people with too much debt. Such debts can come from credit cards, personal loans, and merchant accounts. Financial services also include the infrastructure and systems that facilitate market transactions. Some of these include commodity exchanges, clearing houses, and stock exchanges. They also provide payment systems such as real-time gross settlement systems. In addition, payment recovery services help people recover money they have paid to vendors.
Financial services are essential for the economy. They ensure that companies have enough funds to continue their operations. In turn, this encourages investment, production, and savings. All of these activities help increase the overall prosperity of an economy.