Meaning, Definition, Functions, Characteristics and Scope of Financial Services

Financial services are the economic services provided by a wide range of businesses that manage money. These include credit unions, banks, credit-card companies, insurance companies, accountancy companies, stock brokerages, investment funds, individual managers and some government-sponsored enterprises.

Meaning, Definition, Functions, Characteristics or Features and Scope of Financial Services:

Finance Industry – A key part of any economy, financial services provide essential economic services such as ensuring a stable market, managing risk, and enabling capital to flow freely in the economy. These industries are regulated by government agencies to protect consumers and ensure that they operate in a fair and transparent manner.

Mobilizes Saving: Financial services help people and businesses exchange cash, mobilize savings, allocate capital and monitor managers. They also help redistribute risk.

Enhances Productivity: Financial services enhance productivity by facilitating transactions and allowing savings to be used efficiently. They also make it easier for companies to access funds.

Raises Standard of Living: Financial services raise the standard of living for all by reducing costs and making it more affordable to obtain goods and services. They are also a vital resource for individuals and businesses who need to borrow funds to purchase assets or cover emergencies.

To improve customer service and increase revenue, financial services organizations need to adopt modern technologies that can simplify processes. The use of new technology can also help financial institutions reduce the costs associated with outdated systems.

Posted in: Gambling