Financial services are the backbone of the economy allowing people and businesses to borrow money, spend it securely and save for future use. They also make it easier for consumers to purchase goods and services by offering them credit cards and other electronic means of payment.
Without access to financial services, families cannot afford basic necessities like health, property and life insurance, or a place for their savings. Almost 2 billion people worldwide lack access to financial inclusion, leaving them unable to take advantage of economic opportunities and improve their lives.
There are many different types of financial services, but the basics are credit card companies, banks, insurance agencies and securities brokers. Banks offer checking and saving accounts while mortgage companies offer loans. Insurance policies protect against the loss of valuable items, such as homes and cars. And a variety of investment services are provided by brokerage companies, mutual funds and bond companies.
Some financial service firms focus on a specific niche while others are part of large conglomerates. A conglomerate is a business that owns and operates multiple businesses in the same industry. For example, a large commercial bank may own investment, retail and wholesale banking businesses. This allows the company to benefit from economies of scale while reducing risk and maintaining a competitive edge. It also provides an opportunity for employees to move between the various sectors of the financial services industry. This gives employees a broader range of experience and can be more rewarding for them in their careers.