The Financial Services Industry
The financial services industry is a powerful economic driver that influences the practices, standards and operations of other industries. It also affects the lives of individuals and families who rely on it for their daily living and business needs.
These companies pool money from depositors and borrowers to provide loans to those who need it. They are also responsible for the safekeeping of deposited funds and offer other services like investment advisory and research, as well as a range of credit products.
For investors, they enable them to maximize returns through investments in the stock market and other types of derivative markets. They also provide a wide range of credit facilities for consumers to buy both essential and luxury goods on hire purchase or leasing. This helps the tertiary sector grow faster and is important to the overall economy.
It also provides a wide range of insurance services to protect people against death, injury or property loss (e.g. life insurance, health insurance and car insurance), as well as the management of debts for those who want to avoid bankruptcy. These include debt resolution services, global payment providers (Visa and MasterCard) and exchanges that facilitate stock, derivative and commodity trades. The growth of the financial services industry is a crucial part of a healthy economy. However, the industry can be challenged by new technologies and evolving customer expectations. To thrive, it is important for leaders in this field to reassess their organizational and talent strategies.