The financial services industry is large, encompassing a wide range of products and industries that provide individuals, businesses and governments with the resources they need to manage their finances. It includes banking, insurance, investing and more. The sector also encompasses professional services, such as accounting; public relations; system analysis and design; and real estate agencies.
Banks are essential for consumers, as they help people store and access money. They offer services like deposit accounts, checking and savings accounts, credit cards and debit cards. Many banks also provide lending services, such as extending lines of credit to qualified customers. In addition, many banks provide a variety of other financial services, such as reinsurance, investment advisory and brokerage services.
Regulatory bodies, such as government-designated watchdogs, are important to the financial services industry. They help ensure that companies and consumers are treated fairly. They also set standards that financial services providers must adhere to.
The boundaries between financial services sectors are blurring, with firms offering multiple products and even combining several different types of financial service within a single company. For example, some banks have merged with brokerage firms and mutual fund companies to provide more options for customers. These consolidations also help reduce the cost of capital for financial institutions and improve profitability. Despite these benefits, financial services remain one of the most competitive industries. Because of this, jobs in the industry are often highly sought after and pay is above average.