The financial services industry includes banking, insurance, investment, and more. It also serves individuals, nonprofit organizations, businesses, and governments. The financial services industry plays a vital role in helping to maintain healthy economies in many nations.
There are a lot of companies providing these services. Some focus on just one category. Others are able to combine a few different types of services to offer a more complete service.
The industry has experienced major shakeups over the years. Most notably, the subprime mortgage crisis pushed the entire market to the brink. In addition, the market has seen its share of scandals.
The financial services industry has been regulated by several independent agencies. These agencies work to ensure that consumers are treated fairly and that financial institutions are run in the best interest of the people. The Financial Industry Regulatory Authority (FINRA) is a key agency.
Other regulatory bodies include the Office of the Comptroller of the Currency and the Securities and Exchange Commission. These are government bodies that have the mandate to oversee the activities of financial institutions.
Although the financial services industry is relatively new, it has become an essential part of the everyday life in a global, interconnected world. Having a financial service available to a businessman can maximize return on investments.
Despite its challenges, the industry is making some good moves. Some tech companies are capturing up to 40% of US financial services revenue from the incumbent banks. Some of the biggest names in the space are Apple and Amazon.