The Financial Services Industry
Financial services are the products and services that help people manage their money. This industry is a vital part of any healthy economy.
A bank, for example, provides financial goods and services like checking accounts, savings accounts, credit cards, mortgages and loans. They also handle transactions, such as cashing checks and transferring money from account to account electronically.
There are many different kinds of businesses within this sector, from traditional banking companies to startups with innovative technology. Despite their differences, financial services companies are united by one common goal: to ensure customers have access to the financial tools they need to achieve their goals.
Some of the most important financial services companies include banks, investment houses, lenders, mortgage brokers and insurance companies. They serve customers worldwide by facilitating the flow of money between individuals and businesses.
They also play a critical role in supporting national and global economies. If the financial services sector fails to function, it can drag a country’s economy down.
These firms are regulated by independent agencies, which oversee their operations and uphold fair treatment of customers. Some of these include the Financial Industry Regulatory Authority and the Office of the Comptroller of the Currency.
The financial sector has become an increasingly important part of the economy. Especially in developing countries, financial services are essential to helping people save and reinvest their money to make it grow over time.
In addition to the traditional banking, insurance and brokerage sectors, the industry is now expanding rapidly through the rise of fintech. These companies combine digital and physical technology to provide customers with new ways to access their financial information, such as mobile phones.