Financial services encompass the wide range of activities involved in making, investing and managing money for people and organisations. Examples include banks, mortgage lenders, securities traders, insurance companies and Wall Street.
There are many different types of financial services but they all serve the same purpose: to help make money go further. Some of the most common financial services involve transferring money from one account to another or trading stocks on the stock market.
These services help people buy goods and get finance for the things they need. This can be as simple as getting a mortgage to buy a house or as complicated as taking out an investment portfolio.
The financial services sector is a major driver of economic activity, as it provides a free flow of capital to the economy. It also enables businesses to manage their risks more effectively.
It also ensures the promotion of domestic as well as foreign trade. This is done by ensuring the distribution of funds to all sectors, including the primary and tertiary sector.
This helps to promote economic dynamism by increasing production and employment. It also helps regions that are backward economically to develop and catch up with the rest of the country by introducing cheap credit, taxation and other policies which give more opportunity for investment.
The financial services sector is a vital component of the economy, as it provides many different types of products and services to consumers. This can range from basic banking and savings accounts to digital services, like e-wallets and online financial advice.