Financial services are a broad category that encompasses a wide variety of industries. They help individuals and businesses to save and make money. A healthy financial services sector also safeguards the health and property of both individuals and businesses.
The Financial Services Sector includes thousands of depository institutions and providers of investment products, including banks, insurance companies, and other credit and financing organizations. It is a key component of the nation’s critical infrastructure.
Financial services are the linchpin of economic stability. When a bank or other financial institution fails, the economy suffers. This can lead to recessions. As a result, jobs may be cut, wages could drop, and consumers will stop spending. However, a healthy Financial Services Sector protects consumers’ money and allows for companies to grow.
Insurance is another vital subsector of the financial services industry. In addition to covering liability and unforeseen expenses, insurers can protect against catastrophic loss.
Various types of insurance are available, from life to health. Life and health insurance are usually sold to individual consumers. Other types of insurance include property and casualty, and retirement.
Many community-based nonprofits provide counseling to people about how to handle their money. Investment management firms and family offices work with wealthy families and individuals. These firms often use structured finance to develop complicated products for high net worth clients.
Commercial and regional banks offer a variety of banking services to customers. These banks provide loans, guarantee checks, and accept deposits. Some banks also underwrite debt for the private and public sectors.