The Financial services industry covers a wide range of businesses and occupations. It includes banks, credit unions, insurance companies, credit-card issuers and networks, payment processing companies, stock brokerages, and even debt resolution services.
This sector also encompasses independent regulatory agencies designed to oversee different aspects of the industry and uphold transparency. Financial services are an important part of the world economy and can be a major contributor to economic growth and prosperity. The industry’s success depends on a healthy balance between government oversight and the ability for new companies to offer creative financial products that benefit consumers in the long run.
Many people use financial services to manage risk, which helps them achieve their personal and business goals. For example, a homeowner takes out a mortgage to pay for their house, while a company may purchase insurance policies to cover the cost of potential loss or damage. The broader category of financial services also includes investment management, which involves the selection and monitoring of investments to meet a client’s needs, according to their financial objectives, risk tolerance, and time horizons.
Another popular category of financial services is wealth management, which includes asset management and estate planning. These services help individuals and families manage their finances by providing advice, arranging transactions, and advising on retirement plans and other investments. Many of these services are provided by independent financial advisers, who may offer guidance on investment strategies and asset allocation. In addition, many financial services are offered by large global banks, which provide banking, credit card, and payment services to customers worldwide.