Financial services are the industry sector that encompasses all banking and related activities (deposit-taking, lending of all types, credit intermediation, financial leasing, insurance and reinsurance brokerage, actuarial services, risk assessment and claims settlement); financial markets utilities, such as stock and commodity exchanges and clearing houses; payment systems, such as real-time gross settlement systems or international bank wire networks; and advisory, intermediation and other auxiliary services.
These services are important to a country’s economy because they allow for the free flow of money and commodities in the marketplace. This allows consumers to spend more, which increases the overall purchasing power of a nation’s citizens, and provides access to credit for those who may not be able to obtain loans or investment capital from other sources. A strong financial services sector contributes to a healthy economy, while a weak one can cause economic collapse.
As the demand for financial services continues to grow, it is important for companies in this field to make sure their clients understand all of the services they offer. Many people are not aware of all the products their banks provide, and they may end up going elsewhere for these services. This is especially true in an age where new technologies are making it easier than ever for consumers to manage their finances.