Financial services are a broad category of economic services that are provided by businesses in the finance industry. These businesses include credit-card companies, banks, and credit unions. They offer a variety of products and services, including loans, deposits, and investments. Depending on the service, these businesses can be classified as either regulated or unregulated.

The nature of financial services means that they need a wide range of skills to provide a good experience to their customers. Individuals with a specific interest or talent in a specific area can become valuable assets for an institution. Moreover, IT systems are extremely important in financial services, since consumers are dependent on the latest information to make informed purchasing decisions.

A financial service provider accepts deposits from customers and provides loans, earning a profit on the difference. They also manage investments and facilitate account settlements. They also help companies purchase and sell securities and help them raise funds. Investment banks offer advice on investing and managing funds for their customers. These companies also take on some of the risk associated with loans and investments.

These services are essential to the functioning of the economy. Without financial services, people would have a difficult time saving money and borrowing money. Without these services, people might not be able to buy a wide range of goods. They also help the economy grow by distributing funds equally among the various sectors.