Financial services are economic services that are provided by businesses in the finance industry. These businesses include banks, credit-card companies, and credit unions. While each of these companies provides different services, these companies all work under the umbrella of the financial services industry. Financial services are a huge part of our economy, and they are essential to every aspect of our lives.
These companies accept deposits and make loans on them, making money from the difference between the deposits and loans. They also facilitate the transfer of funds and the settlement of accounts. They may also invest your money for you, providing you with advice on where to invest it. You can handle many of these services yourself, but it may be more convenient and less costly to pay someone else to handle them for you.
The financial services industry is undergoing transformation. New and innovative financial services are transforming the way we bank. For example, in the U.S., over 1.2 billion people now have access to financial accounts. In addition, 69% of the world’s population will be financially active by 2017. In many countries, digital financial services have already reached substantial scale. As a result, millions of previously excluded customers are transitioning from cash-based transactions to formal financial services.
Financial services are crucial to the economy. Without adequate funds, businesses can’t operate properly. Without financial services, you would be hard-pressed to find a suitable buyer or a suitable supplier of goods. In addition to lending money, these companies also assist in the acquisition of valuable assets.