Using financial services allows individuals and companies to earn and save money. They can buy consumer products, borrow money, and sell investments. These are essential to the functioning of an economy.

These services include the purchase of stocks, bonds, and mutual funds, and the selling of securities. They can also help businesses raise capital. Some of these services are offered by financial institutions, while others are offered by independent agencies. These entities are tasked with maintaining transparency and making sure that clients are treated fairly.

Some financial service providers take on the risk of borrowers not paying back their loans. The companies that offer these services make a profit by taking the difference between a loan and a deposit.

These financial service providers also act as a conduit to transfer funds between different individuals and organizations. Some of the organizations that offer these services are credit card networks, depository organizations, and global payment providers.

Another area that is commonly considered in the field of finance is insurance. This can help to protect consumers from financial loss due to natural calamities, business conditions, and other factors.

There are many community-based nonprofit organizations that provide financial counseling services to consumers. They can help to reduce the risks of borrowing and saving money.

In addition, there are several government laws that are enacted to protect consumers from financial fraud. For example, the Insurance Regulatory and Development Authority (IRDA) was set up in 1999. This agency helps to regulate the insurance industry.