The Financial Services Industry

Financial services is an industry that encompasses a wide range of businesses that manage money, including credit unions, banks, credit-card companies, insurance firms, accountancy companies and consumer-finance companies. It also includes investment funds, individual managers and some government-sponsored enterprises. Financial services facilitate the flow of funds between savers and borrowers, which is essential for economic growth. They ensure that companies can acquire funds to boost production and therefore increase profits and employment opportunities. This is why it’s important that governments regulate these industries so they can operate fairly and ethically.

A vibrant capital market is a sign of healthy financial services and can indicate whether the economy is growing or not. It enables companies to raise and disburse funds quickly, so they can invest in more projects which in turn create more jobs. It is also vital for businesses to have access to financial services, as they can help them grow and expand into new markets. Without this, they will be limited in their potential and won’t be able to compete in the global marketplace.

A wide range of specialised financial services are offered by this sector, including lending, capital raising, and managing risk. This is typically done through portfolio managers, who assess and optimise customers’ investments across a range of assets, such as stocks, bonds, loans, real estate, and commodities. Other services include facilitating the movement of funds, providing valuations, and offering M&A counselling. The finance industry also offers a range of risk management services, which can help companies reduce their exposure to various risks, such as natural disasters and political turmoil.