Financial services are a vital component of the economy. They enable businesses to invest, save and manage their finances. They also help individuals plan for their future.
The financial services industry is highly regulated to protect consumers and ensure the stability of the financial system. These services are offered by banks, credit unions and other financial institutions.
Changing customer demands and intense competition are putting pressure on legacy financial institutions to meet the expectations of a savvy, tech-savvy customer base. They are increasingly using new technology to offer innovative features like lower overdraft fees and user-friendly apps.
Special features: – Specific to the customer: These firms focus on the needs of their customers by studying their specific financial needs and deciding a strategy accordingly. This allows them to tailor their products and services for each customer based on costs, liquidity and maturity.
Intangible nature: The brand image of a company is important in a competitive global environment. Unless financial institutions providing financial products and services have a good image and enjoy the confidence of their customers, they may not be successful.
Concomitant: The production and supply of new and innovative financial services need to be performed simultaneously. This is because these types of services tend to perish and cannot be stored in advance unlike other kinds of services.
Insurance: These services provide protection from loss, liability and injury. Agents and brokers represent insurers and their clients, shopping around for policies. Underwriters assess the risk of insurance, while reinsurers provide cover to investment banks and other insurers.