Financial services are the businesses that help people and organizations make, invest, and manage money. This industry includes banks, credit unions, credit card companies, and investment firms. It also encompasses a variety of other professional services such as accountants, tax filing, wire transfer services, credit-card machine networks and global payment providers such as Visa and Mastercard.
Banking services include handing deposits into checking and savings accounts, lending money to customers for a variety of purposes, and helping them with their investments. For example, when you buy a home or car through a bank loan, they earn interest on the money they loaned you.
Insurance is another important service provided by the financial services industry. It acts as a safety net to cover expenses when the unexpected occurs, such as an illness, car accident or loss of income. There are many different kinds of insurance, such as health, auto, and homeowners insurance, as well as life insurance.
Another essential service of the financial services industry is providing loans to businessmen to boost their production, thereby leading to economic growth. Consumer finance is also an important aspect of the financial services sector, which makes it possible for consumers to purchase products and services by paying in installments over a period of time.
The presence of a vibrant capital market is considered as a sign of healthy economic condition. It allows companies to grow and develop, which leads to employment opportunities for citizens in the tertiary and secondary sectors of the economy.