Financial services is a broad term that includes all the businesses and industries that offer money-related products or services. These include banks, credit unions, and credit-card companies.
The industry aims to help people use their finances to grow their business or create long-term wealth. It also helps people prepare for emergencies and make savings goals.
Banking, Insurance, Investment Management and Mortgages are a few of the most popular financial services. These are vital for consumers because they allow them to make purchases, save for retirement, and manage their money.
In addition, financial services also provide a means for companies to raise and distribute funds. They can provide loans, debt, factoring, and hire-purchase finance to help a business succeed.
Corporate financial services are essential for companies to operate and stay in business. They handle cash flows and balance sheets, and ensure that a company has enough liquidity to pay its debts on time.
Personal financial services are also important to families because they help them manage their budgets and set savings goals. They can also provide advice on insurance and investing.
The financial services industry is an information-based industry and uses technology to produce and deliver its products. It is also a growing segment of the global economy, driven by a maturing population and growing wealth.
Financial institutions, like other service firms, constantly remain in touch with their customers so that they can design products that meet specific needs. In a highly competitive global environment, brand image is a critical component of success for these companies.