A healthy financial services sector is essential to the economy. It provides the means for individuals to get loans for homes, cars, education, and more. It helps people save for retirement and other goals, and it safeguards property and health through insurance. It also allows businesses to grow and expand, and it employs millions of hard-working people with solid salaries.
The core of financial services is banking, but the industry encompasses much more. The sector includes investment agencies, stock market brokers, and more. It even covers activities like credit redistribution and the management of debt.
Banking services – Provides depository services such as checking accounts, savings accounts, and money market funds. Financial institutions also offer loan products, such as mortgages and commercial loans. They earn revenue through fees, commissions, and other methods like the spread between interest rates charged to borrowers and paid to depositors.
Investment services – Invests in stocks, bonds, mutual funds, and other securities on behalf of clients. These companies typically provide research and advisory services as well. Private banking services – Often offered by banks, these services are reserved for high-net-worth individuals and families.
The best way to learn about financial services is to talk to the experts. Bankers, brokers, and other professionals are happy to share their knowledge on a range of topics from how to manage student loans to finding the right mortgage for your new home. You can find them in seminars, one-on-one consultations, and online.