Financial services put money to productive use. They intermediate flows of saving from those who have it to those who need it, such as for investment in a new technology or a mortgage loan. Financial services firms also protect borrowers and lenders against bad loans and other problems. They do this by following strict rules set by governments to ensure transparent information and fair treatment of customers.

The most obvious examples of financial services are banking, credit cards, and insurance. Banks offer many financial services, including checking and savings accounts, debit cards, electronic transfer services, credit ratings and scoring, and even notary services. Credit card companies provide both credit and charge cards, with perks like frequent-flyer miles and cash back.

Other financial services include investment banks, which work to underwrite debt and equity for private and public companies, advising them on mergers and acquisitions. They are also known for developing complex derivative products for high-net worth individuals and institutions.

Consumer finance is another important subsector of financial services, providing credit cards and personal and student loans, as well as mortgages. They are also known for their ancillary services, such as credit-card payment networks and global settlements. Finally, venture capital and angel investors supply investment funds to small businesses and startups in exchange for ownership stakes or profit sharing. Government agencies regulate financial services to prevent crimes like fraud, money laundering, and insider trading. They do this by setting clear rules for providers to follow, requiring them to report suspicious activities and maintain detailed records of their business transactions.