Financial services are a vital part of the economy that enable people to put their money to good use. The industry includes investment banking firms, credit-card companies, debt-resolution services, banks, insurance agencies, and more. A strong financial services sector typically leads to a healthy economy and higher purchasing power for consumers.
The financial services industry helps consumers and businesses acquire what are called “financial goods.” Financial goods are tangible products that have lasting value like stocks, bonds, loans, commodity assets, real estate, and insurance policies. The industry also encompasses the processes involved in acquiring these goods, such as hiring purchase finance and using credit cards.
These services can include helping consumers with credit problems get back on track by negotiating with creditors to allow them to pay less than they owe in order to resolve debts without having a negative impact on their credit score. Another important function of financial services is enabling individuals to save for down payments on homes or vehicles, saving for retirement, and protecting their health and property through insurance policies.
Governments regulate the financial services industry to ensure that providers give consumers clear documents, treat them fairly, and respond promptly to complaints. They also enforce rules to prevent financial crimes, such as fraud and money laundering. These laws may require that providers report suspicious activity, conduct thorough background checks, and keep detailed records.
