Financial services is a broad sector that touches everyone in big and small ways. It includes banks, hedge fund managers, and small community banks, as well as nonprofits that provide financial counseling and money management advice.
Financial goods are products that last beyond the provision of a service, such as stocks, bonds, loans, commodity assets, real estate, and insurance policies.
Banks – They provide checking accounts and other deposit accounts, credit facilities and investment options like mutual funds. They also offer lending and underwriting to companies seeking to raise capital.
Insurance agents – They sell insurance to protect people against losses caused by accidents or disease. They can also advise investment bankers on loan risk.
Conglomerates – They are companies that operate in more than one area of the financial services industry, usually to diversify their earnings. This style of business has grown significantly in recent years, especially since 1995, when a large number of large and small companies have merged to create larger economies of scale.
The goal of the financial services industry is to help people live financially well. They can do this by having more control over their finances, making smarter decisions, and being able to save for the future. This can improve physical and mental health, as well as ensuring individuals have more resilience in the face of unexpected events.