Financial services involve the making, investing and managing of money for people or organisations. They also help people save and protect their assets from damage or loss.
The field is dominated by banks, investment firms and insurance companies but there are many other options. These include asset management, hedge funds, mutual funds and other companies that handle pensions, insurance assets and other forms of wealth.
Banking – Banks provide a variety of financial services that include checking and savings accounts, mortgages and loans. They also offer credit cards and other types of credit products.
Accounting – Professionals in this sector provide services to keep financial records accurate and up-to-date for tax purposes. This helps businesses and individuals avoid penalties or legal repercussions.
Advisory – These firms (or departments within larger entities) service clients with financial advisers who serve both as a broker and as a financial consultant. They are often in charge of a family’s or small group of wealthy individuals’ finances and their plans for the future.
Conglomerates – These are businesses that operate in more than one sector of the financial services market, such as life insurance, general insurance, health insurance, and asset management. A rationale for this practice is that aggregating different businesses provides a diversified economic base, which can lead to higher returns in the long run.
Despite technological advancements, a large number of consumers still lack confidence in making financial decisions, putting them at risk of losing money and failing to meet their debt obligations. The financial services industry has the potential to make substantial commercial gains by building customers’ financial wellbeing.