Financial services are the roles that deal with the management and exchange of money. This includes banking, investing, insurance and more.
In a broader sense, a healthy economy requires a vibrant capital market. That means that companies are able to acquire the necessary funds for expanding their production capacities and reaping more profits in due time. This enables economic development and boosts the overall growth of a nation. This kind of scenario is a result of the existence of a number of effective financial services, such as those involved in credit card or mortgage lending, personal and commercial loan facilities, and investment advisory and trading.
Banking services include depositing customer money into checking and savings accounts, as well as lending that money to others (via loans). Banks also earn revenue through fees and commissions like the spread between interest rates on credits and deposits.
Other specialized financial services include payment and debt resolution for consumers, and financial market utilities such as stock and commodity exchanges, clearing houses, derivative and securities markets and interbank systems. The latter involves the transmission of money from one financial institution to another in real time, and are essential for the functioning of the larger finance industry.
Professional financial advising is also a part of this sector, and can take many forms such as aiding in business mergers and acquisitions, providing valuation services for businesses, or even helping with a client’s real estate endeavors. This type of service can be offered by a large domestic consulting firm, or by a multinational investment bank.