Financial services are a broad category of economic services provided by the financial industry. These include businesses such as credit unions, banks, and credit-card companies. The industry itself is vast, encompassing a wide variety of businesses. The services offered by these companies range from the lending of money to the buying and selling of products.
Another area of financial service work involves advising people on how to save money. Banks, for example, provide many services, such as buying and selling shares, bonds, and other securities. These institutions pool cash and make loans to people, and they make a profit on the difference between what they lend and what they receive in return.
Financial services also benefit the economy by promoting domestic and foreign trade. By providing financing, financial institutions can expand their activities and promote a more competitive economy. These services also help to promote investment, saving, and production, resulting in a higher demand for goods and services. This helps the economy grow in a balanced manner, ensuring that no sector is overburdened or under-utilized.
A wide variety of innovative financial services are emerging in the market. The growing use of digital technology for the payment of goods and services has opened the door to new financial tools and services. Apple’s successful launch of the Apple Card is just one example. Another example is Amazon’s plan to bring Amazon Pay to in-store retailers. This could attract merchants by eliminating interchange costs, which amount to $90 billion annually.