What Are Financial Services?
Financial services encompass a broad range of business activities including banking, credit intermediation, investment management and insurance. A healthy financial sector helps people with loans to buy houses, cars or education and gives businesses the capital they need to grow. It also safeguards property and assets through insurance policies, and it provides millions with high-paying jobs.
The industry is incredibly diverse and includes everything from credit card companies to mortgage brokers to digital payment systems. As a result, it’s difficult to pin down exactly what financial services are. However, some of the more common activities include:
Technology has radically changed the way that these firms operate. For example, online banking allows clients to check their accounts at any time, and many operations are now entirely automated. In addition, the Gramm-Leach-Bliley Act consolidated banks by eliminating Glass-Steagall restrictions and allowing them to offer investments as well as commercial banking services.
Debt resolution – A consumer service that assists consumers with too much debt to pay their bills. This may involve working with unsecured creditors or the bankruptcy process.
The future outlook for financial services is strong. The global economy continues to grow, and there is steady demand for loans and other services that these firms provide. Moreover, there is a good balance between regulation to keep people’s money and rights safe, and a level of flexibility that allows these businesses to innovate and find creative ways to serve their customers.