Financial services are a broad and varied category, touching virtually everyone in some way. It’s a sector that includes everything from hedge fund managers to small community banks and even nonprofits.
Traditionally, the industry has been split into different sectors, each with its own specialty. In modern times, however, this has been largely replaced by an all-encompassing approach. Banks now provide checking and savings accounts, mortgages, credit cards and other products. Brokerage companies offer stock, bond and mutual fund investment opportunities, and loan associations provide personal loans.
Insurance is another key subsector within financial services. These services include protection against death or injury, property damage or liability.
Other types of financial services include private equity funds, venture capital providers and angel investors. These groups supply investment capital to firms in exchange for ownership stakes or profit participation.
They also play an important role in helping startups raise money, which helps them grow. Many angel investors are wealthy individuals who have a large net worth and seek to invest in small businesses and start-ups.
The financial services industry is a rapidly growing sector, with a multitude of stakeholders and moving parts. It is a complex sector that faces challenges of speed and innovation, while upholding transparency, compliance, and customer service.