Whether it’s saving for a down payment on a home, investing in stocks or mutual funds, buying insurance or getting a credit card, financial services help people buy the things they need and want. A strong financial services sector means that people can get loans easily to meet a variety of needs, and that businesses have a steady stream of capital to grow and hire more workers.
The financial services industry encompasses many different types of companies. It includes accountants and tax filing professionals, credit bureaus, wire transfer and foreign exchange services, credit card network providers, debt resolution services and global payment service providers. It also includes financial market utilities, which manage the technology that enables stock, derivative and commodity exchanges to function.
It covers a wide range of products and services including personal lines of insurance like life, health, property and casualty, as well as investment management. It also includes reinsurance, which is insurance sold to insurers to protect them against catastrophic losses.
A healthy financial services sector is vital for a country’s economy. It helps individuals save for a home or other expenses, invest in the stock market or in their own business, and safeguards against risk with insurance policies. It provides millions with good jobs, and it gives people confidence that they can afford to purchase the things they need. Without a robust financial services sector, countries can’t prosper and their citizens can’t live comfortably. It is no wonder that these services are regulated and monitored at the national level in most countries.
