Financial services is an industry that consists of professional firms that handle various aspects of finance, such as investment management, insurance and banking. It’s an important sector that provides many vital economic functions. It allows people to save and invest for future goals, such as buying a house or retirement. It protects individuals’ health and property with insurance, and it helps businesses grow by providing them with credit. Without access to these financial services, millions of people would have a hard time getting by.
A healthy financial services sector is essential for an economy to thrive. It provides millions of people with jobs that pay well, enabling them to live with some comfort and security. It also enables people to get money when they need it by loaning them funds or credit cards. This money can be used to purchase anything from food and clothing to housing or cars.
The financial services industry may seem all-encompassing today, but it wasn’t always that way. Before the 1970s, each sector of the industry stuck to its niche. Banks offered checking and savings accounts, while credit unions provided mortgages and loans. Brokerage companies and mutual fund companies sold investments, while credit card companies like Visa and Mastercard offered credit cards.
Nowadays, the lines between these sectors are blurred thanks to technology. Many financial services are available online, which has opened new opportunities for consumers and the industry alike. However, it’s important for consumers to research each company and make sure they’re reputable. They should also consider the fees, customer reviews and range of services offered before deciding on a provider.