Financial services is an industry that includes many different kinds of companies. These organizations provide a wide range of products and services, including banking, investment and insurance.
Banks, loan associations and brokerage firms are some of the major players in the financial services sector. They are able to earn revenue from consumers through fees, commissions, and interest rates on loans and deposits.
The financial services sector is a vital part of any economy, and can be a source of economic growth or recession. A strong financial sector can help improve a country’s economy and ensure that everyone has access to credit.
It also enables businesses to raise funds for their operations and increase production. In turn, this boosts a company’s profits and helps the economy grow.
Another important aspect of financial services is that it encourages the promotion of domestic and foreign trade. This helps regions that haven’t developed economically.
Regulatory bodies are responsible for the oversight of the financial services sector, as well as protecting consumers and upholding transparency. Some of the most prominent agencies in the industry include FINRA and the OCC.
Insurance is another key area of the financial services sector, and provides protection against death or injury (life insurance), property damage (homeowners or car insurance) or liability or lawsuits. It also includes companies that provide underwriting, reinsurance and other insurance-related services to clients.