Financial services are the activities related to the making, investing and managing money for both people and organisations. They can include anything from providing credit, to trading shares in the stock market, to helping people put money away for a rainy day (banks).
One of the most important kinds of financial services is insurance. It protects against things like death or injury, property loss or damage and liability. It’s a kind of risk management, and it’s an integral part of the economy.
Another essential financial service is the banking industry. Banks take deposits from the public and then lend it out to others, charging interest on the loans. They also provide other services such as treasury management, bill discounting and credit card services.
Other kinds of financial services include capital markets, which raise funds by selling securities to investors. They also underwrite debt and equity for companies that need to raise money, as well as advise them on mergers and acquisitions.
Finally, financial services help to boost the economic growth of a country by mobilizing the savings of the public and investing them in productive assets. They also help to spread out investment into different sectors of the economy, so that each sector can grow at its own pace. This helps to ensure that the entire country isn’t overly dependent on any one industry and creates employment opportunities.