Financial services are a group of businesses that help you make, invest, and manage money. They include banks, insurance companies, and investment funds.
The services that financial companies offer are crucial to the economy, because they allow people to save and make their money grow. They also provide essential services to consumers, like mortgages and credit cards.
Often referred to as the “financial ecosystem,” this industry encompasses a wide range of professionals and products that support the economy. Its strength depends on an environment where interest rates remain stable, where there is a healthy balance between regulation to protect consumers’ rights and freedoms, and where innovation is possible.
In addition to providing financial products and services, financial companies are also involved in global economic intermediation. In other words, they help companies around the world get what they need to be successful in their trade relationships with one another.
A key component of the financial industry is information technology. This includes systems that keep track of money and transactions, as well as enabling customers to make financial decisions online.
Another important aspect of the financial industry is lifecycle management. Banks must understand what products and services will be of use to their clients at different stages of their lives, such as purchasing a home or starting a family.
For example, they may know that a person who is just beginning to build their credit will need debt resolution services, where they can negotiate with creditors and pay less than they owe. Using this information, they can prepare the right product and service for that customer at the correct time in their lives.