The Financial Services Industry
The finance industry provides a range of economic services. It comprises a variety of businesses, including credit-card companies, credit unions, and banks. Among the services that are provided are loans, insurance, and investment products. It is also responsible for maintaining the financial markets. These services are essential to our lives, but many of them are often overlooked or unappreciated.
Banks provide many types of financial services, including loans, investment management, and mortgage lending. Commercial banks issue loans and guarantee deposits for customers, provide credit facilities, and underwrite debt and equity for public and private businesses. They can also advise companies on mergers and takeovers. Other financial services include structured finance, which develops complex products for institutions and high net worth individuals. Another type of service is insurance, which manages a customer’s assets and manages their liabilities.
Other financial services include accounting and tax filing. Currency exchange and wire transfer services are also part of the financial services industry. Credit card networks and machines also provide services to consumers and businesses. Debt resolution services and global payment providers like Visa and MasterCard also play a key role in the industry. In addition, financial services also help individuals manage their personal finances.
Legacy financial institutions must adapt to customer expectations or risk being overwhelmed by more agile competitors. Traditionally, the financial services industry is split into two segments: personal/consumer and corporate. While many companies target both categories, others focus on a single segment. New non-traditional banks are emerging to capture market share. They often offer competitive rates, lower overdraft fees, and user-friendly apps.