Financial services are a broad range of economic activities that allow money to flow from one sector of the economy to another. They include many types of businesses that manage money, including credit unions, banks, and credit-card companies.
Productivity and Competitiveness:
Financial service firms are customer-oriented and constantly remain in touch with their customers to design products that can meet their needs. They also study the market dynamics closely to ensure that their products can accommodate changing trends.
In order to help people grow their savings, financial services offer various convenient investments options that can earn reasonable returns without much risk. Mutual funds are a good example of these types of investments.
These financial services link those who need money to those who have money. They can also provide people with loans if they are in need of them.
Raises Standard of Living:
These services play a crucial role in raising the standard of living of people. They enable people to buy expensive goods on hire purchase system which increases their disposable income.
Improved Employment Opportunities:
Financial services companies employ a large number of people to sell their products and services. They pay their employees remunerations out of the profit earned by selling these services.