Financial services are the economic activities that support businesses, governments and individuals in managing their money. They consist of banking, borrowing, saving and investing. When financial services are strong, a country’s economy thrives. When they are weak, economies falter and recessions occur.
Banks are financial services companies that manage the flow of money within a nation by collecting deposits from individuals and companies, pooling them together, and lending them out to those who need the funds. Financial services also include investment firms that offer stocks, bonds and other securities to investors, insurance companies that provide life, health and property coverage against financial loss, and payment-processing systems that facilitate transactions between banks and consumers.
A robust financial services sector enables a country to grow its primary, secondary and tertiary sectors in a balanced way. This, in turn, boosts employment opportunities as well.
People who have control over their finances are more resilient in the face of unexpected events, are better able to save for future needs and enjoy greater physical and mental wellbeing. Financial services companies play an essential role in helping individuals gain a stronger grip on their personal finances.
Regulatory bodies are tasked with upholding transparency and ensuring that clients in the financial services industry are treated fairly. Financial service providers work closely with independent agencies to ensure compliance and to protect their customers. They are also known for promoting from within and focusing on aptitude over tenure, which makes it an attractive career option for young professionals.