The Financial Services Industry

Categories : Gambling

Financial services

Financial services are economic services that help in the making, investment and management of money for individuals and organisations. They include banking, credit unions, insurance companies, credit card providers, stock exchanges and other services that facilitate the trading of securities (stocks, bonds, commodities) and hedging of risks.

The financial services industry is a critical component of the national and global economy, directly impacting businesses and people’s lives. However, many consumers still struggle with understanding financial products and services, debt and basic money management. And, while technological advancements have changed the way we manage our finances, there is still much work to do when it comes to building customers’ financial wellbeing.

The financial services industry provides a wide range of products and services that support economic dynamism and promote saving and investments. These include mutual funds, factoring, hire purchase finance and other consumer products, commercial financing through new issue markets, and specialized services such as risk mitigation, debt resolution and structured finance. This industry is also important for providing employment and generating tax revenue. In the United States, for example, the financial services sector employs about 7.6 million people. The industry also enables businessmen to expand their operations by helping them raise capital through the new issue market or by providing loans. This allows them to produce more goods and thus increase the standard of living of the general public through increased economic growth. The presence of financial services also helps in minimizing the risks faced by both the service providers as well as the producers through insurance coverage.