Financial services provide a broad range of economic services. They are provided by businesses such as banks, credit-card companies, and credit unions. In general, they offer loans, credit, and insurance. In addition, these companies help people plan and save for their future. The financial services industry is one of the largest in the world.
These services are essential to the functioning of an economy. Without them, people would have trouble borrowing money or purchasing goods. These companies help ensure that companies have enough money to meet the demands of their customers. They also help businesses increase their goodwill. A lively capital market attracts foreign funds, which help companies grow. Financial services enable companies to raise capital and disburse it in the most profitable way.
Financial services help promote domestic and foreign trade. For example, factoring companies help increase domestic sales. Insurance companies help promote exports. These services are also important to government-sponsored promotional activities. Governments monitor the economic growth and give fiscal and monetary incentives to regions that are lagging behind. In this way, more investment is encouraged and more production is produced. This creates more profits for producers, which allows them to expand their activities.
The Financial Services Sector consists of thousands of companies that provide financial services. Some of these businesses provide financial services to people in need. They offer loans, mortgages, insurance, and investments.