Financial services are the activities by which people acquire or receive goods and services that are based on their money. These include things like mortgages and life insurance policies.
They also help you manage your money (like your bank or credit card) and provide advice. They’re usually regulated by an independent agency, such as the Financial Industry Regulatory Authority or the Office of the Comptroller of the Currency.
There are many different kinds of financial services, including insurance, investment, and banking. A person who works in the insurance industry may be a broker who negotiates rates with insurers, or an underwriter who creates policies to protect your assets.
A bank is a company that accepts deposits from customers and issues a check guaranteed by the bank itself. It also provides loans and other types of credit to customers.
The financial sector includes thousands of depository institutions, providers of investment products, and insurance companies. It also includes the critical financial utilities that support these functions, such as stock exchanges and clearing houses, derivative and commodity exchanges, and payment systems.
It also includes debt resolution services, foreign exchange services, and credit card machine services and networks.
The financial services sector plays an important role in the development of the economy and in helping regions that remain backward to catch up with the developed ones. It helps in promoting production, employment, income and demand. It also ensures equal distribution of funds to all the three sectors of the economy – primary, secondary and tertiary.