What Are Financial Services?
Financial services are the sectors which play an important role in the economy of a country. These sectors include banking, insurance and financial services.
The main aim of this sector is to increase the supply of funds to different companies for the purpose of production and generating more profits. This increases the economic growth and ensures employment generation in a well developed country.
This sector also ensures promotion of trade in the domestic as well as foreign market through factoring and forfaiting firms. This encourages the production of goods in backward regions and helps them to catch up with the progress made by the other developed countries.
A large number of banks, brokers and mortgage lenders are part of the financial services industry. But the industry is far more than just these three sectors and includes investment firms, Wall Street, insurance companies, securities traders, financial advisors and much more.
One of the more interesting aspects of the finance sector is that it is becoming increasingly digitized. With digital technology, the industry is making it easier than ever to manage your finances from anywhere in the world.
The sector is subject to many regulations that often restrict growth and innovation, but these rules are generally designed to protect consumers. These rules are often a reaction to negative events in the economy (think: the 2008 recession).
In addition to the major players, there are smaller, more specialized firms that provide financial services. These firms provide a wide variety of services, including private banking, currency exchange and wire transfer.