Financial services are all the activities related to managing money, from credit and debt management to investments and wealth management. It includes banks, credit unions, insurance companies, investment funds and even the payment systems that handle things like electronic fund transfers and credit card payments. This wide scope makes it hard to pin down what exactly defines the industry, especially as more and more of these services are moving online. The result is that traditional financial institutions are struggling to keep up with customer demand while new players with different business models and technology are gaining traction.
Banks are the core of financial services and offer everything from checking and savings accounts to mortgage and investment loans. They collect deposits from savers, pool them together and then lend the money to borrowers for various purposes like starting businesses or purchasing homes. Banks also provide other services such as storing and cashing checks, transferring funds between accounts and issuing credit cards. They may also conduct research and publish reports to inform investors about the economy and specific securities.
Insurance companies are another type of financial services provider and they offer policies that protect their customers from unforeseen events like property damage or death. In addition, these companies provide other services such as debt resolution which helps consumers get back on track after running into financial trouble and assisting them with finding solutions to pay their bills.
Another large category of financial services is asset management which handles investment assets such as mutual funds, pensions and other types of investment portfolios. This category also includes services like payment recovery which assists vendors in getting paid for products or services they’ve delivered to clients.