The financial services industry encompasses all roles that manage and exchange money. While most people think of banks when they hear the term “financial services,” this industry also includes companies that specialize in investing, insurance and financial analysis. Despite its wide scope, the financial services industry has a clear focus: providing solutions to help individuals and businesses better manage and exchange their funds.
Investment Services — Investors seek to increase their wealth by purchasing stocks, bonds, mutual funds and other securities. Investment services companies offer these investment options to investors and help them choose which ones are right for their financial goals.
Banking Services — This includes commercial banks, credit unions and credit-card companies. Banking services companies provide deposit and lending solutions for consumers and small businesses.
Insurance Services — This includes life, property and health insurance. These types of policies protect against financial loss due to unforeseen circumstances and events.
Other Financial Services — These include debt resolution, payment recovery and financial market utilities (stock and derivatives exchanges, clearing houses, payments systems and real-time gross settlement systems). These companies provide services that support other parts of the financial sector.
Financial services are an important part of the economy and can influence other industries’ practices, standards and operations. As a result, it’s vital that these companies continue to innovate, build customer well-being and improve operational efficiency. To do this, they need to be nimble and adaptive to changes in the industry.