Financial services is a broad term that covers all of the business activities that deal with money. It includes banks, credit unions, insurance companies, stock brokerage firms, and more.
The Financial Services Sector encompasses thousands of depository institutions, providers of investment products, insurance companies, and other credit and financing organizations, and critical financial utilities that support these functions. It also includes financial intermediaries, such as securitizers and investment firms, leasing companies, hire purchase, and the provision of personal and consumer credit.
Banks, credit unions, and other depository financial institutions provide the means by which people pay for goods and services and save for goals such as retirement or education. They also offer financial advice to help people make better financial decisions.
In addition to providing financial services, the sector also provides many job opportunities and contributes to economic growth. It employs millions of workers and enables businesses to grow and expand, as well as provide benefits to employees and their families.
Regulatory agencies oversee and protect the interests of consumers, and promote fair treatment. They often work in conjunction with the financial industry to ensure that customers have access to safe and reliable products at competitive prices.
A key challenge for the financial services industry is integrating technology with customer engagement processes to deliver seamless service experiences. This is especially important as digital services are growing and changing the way that financial services operate. For example, the use of mobile devices has led to a rise in digital banking and payments, which allows millions of formerly underserved individuals to participate in formal financial services for the first time.