What Are Financial Services?

Financial services

Financial services are economic services that deal with the making, investment and management of money for people and organisations like banks, credit unions and investment funds. They help consumers save and manage their money, invest in stocks and shares, borrow to buy a car or house and even give advice on how to best use their money.

They are also the backbone of a country’s economy. When the sector is strong, it allows for free flow of capital, which helps companies grow and create jobs. But when the system breaks down, it can drag down the whole economy and lead to a recession.

It also supports the tertiary or service sector by encouraging production, investment and saving. It also enables the purchase of consumer products by offering loans and hire purchases, thereby increasing the standard of living in society.

Despite the many different types of roles within financial services, there are four core areas that professionals work in. The first is asset management, which deals with pensions, insurance assets, mutual funds and more. The second is investment banking, which involves advising and selling securities to individuals or businesses. The third is equity capital markets, which facilitates stock and derivative trading. The fourth area is credit and lending, which encompasses everything from unsecured personal loans to credit card processing services and mortgages.

The industry is undergoing a lot of change right now, and it will be interesting to see how it evolves in 2023 and beyond. One thing is for sure, though: more people will be taking control of their finances, and they will be able to make better decisions.

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