Financial services are the companies that advance loans to businesses so they can grow, grant mortgages and insurance policies to consumers, and help people save for retirement or a rainy day. The sector is vital to the economy, because it allows companies and consumers to invest in projects that would otherwise go unfunded. The health of this industry is a barometer of the overall economy; when there is healthy activity in the capital market, it is a sign that the economy is growing.

The types of companies in the financial services industry are banks, credit unions, brokerage firms, credit card companies and payment processing networks, insurers, private equity funds, and venture capital providers. There are also many individual service providers, such as notary publics, accountants, and debt resolution agencies. This diverse group is responsible for providing most of the essential financial services that consumers and business use every day.

When most people think of financial services, they picture banks, stock brokers, and mortgage lenders. These are all part of the financial services industry, but it also includes money managers, investment banking firms, and insurance agencies.

The companies in this sector create the products and services that we all need to manage our finances, such as IRAs, 401(k)s, home loans, and credit cards. They are also the source of much of the financial advice we get. They are also the backbone of the capital markets, facilitating the buying and selling of stocks and bonds.