Financial services are all the economic activities related to making, investing and managing money. This includes services like providing credit, deposit-taking, lending, exchange, brokerage, investment management and financial advisory. Financial services also include the provision of insurance to individuals and businesses. It also encompasses credit-card networks, debt resolution services and global payment systems.
Having control over one’s personal finances makes people more resilient in the face of life’s uncertainties, happier and healthier in their day-to-day lives and better able to save for the future. But too many people struggle to get on top of their finances – whether it’s through mental health problems, lack of education or a taboo around talking about money. That’s why we launched Talk Money Week to help everyone take control of their finances, no matter their background.
The financial services industry plays a very important role in enabling the growth of other industries. This is because it helps in providing funds to companies so that they can carry out their development plans. Financial services are also responsible for the smooth functioning of the capital market, which is a barometer of the country’s economy.
The financial services industry consists of a number of sectors, including commercial banks (provide deposit-taking, credit facilities and loans to customers), merchant banks (provide services such as foreign exchange, clearing services, and mergers and acquisitions), and non-banking finance companies (provide hire purchase and leasing of goods and mortgages). It also comprises reinsurance companies (sell insurance to insurers to protect them against catastrophic losses). The industry is heavily regulated by government bodies to ensure integrity and consumer protection.