Financial services are important to the functioning of an economy. They facilitate the flow of capital across the world. They help individuals acquire consumer products, save money, and reinvest funds.
The financial services industry is one of the largest industries in the world. It is comprised of a variety of companies and agencies. Governments oversee many of these services. This oversight often involves licensing and regulation.
There are two types of financial service providers: those who provide credit facilities and those who provide investment services. Credit facilities are offered by banks and other financial institutions to help people get loans. Investment services involve a wide range of services such as investment management, retirement planning, and hedge fund management.
There are also community-based nonprofits that offer counseling and money management advice. Brokerage services are used to buy and sell securities for clients.
Insurance companies protect policy holders. The benefits of insurance include saving for unforeseen costs, minimizing risks, and protecting assets.
Banks also offer loans for businesses. These funds can be used to purchase equipment, fund a business, or fund a merger or acquisition.
Companies such as American Express and Wells Fargo offer credit cards. These companies provide credit and travel services, as well as co-branded cards for hotels. Some banks also offer corporate reorganizations.
There are also thousands of depository institutions. The United States is the largest market for commercial banking services. Most of the financial services firms require a minimum net worth to be eligible for a private banking service.