You may think of banks, stock brokers and mortgage lenders as completely separate industries but they’re all part of the financial services sector. In addition to these three sectors, the industry also encompasses credit cards and debt resolution services. And the list goes on to include payment processing providers, credit unions, mutual fund companies, exchanges that facilitate stock and commodities trades and Wall Street.
Financial services are important to people and businesses because they provide capital that is used to fund projects. These projects help the economy grow and create jobs. In addition, financial services help to diversify the economy by spreading funds into different sectors like primary, secondary and tertiary. This helps the activities of these sectors to grow and develop at a balanced rate. This way the economic growth is evenly distributed and employment opportunities are generated.
Financial services are also beneficial to individuals because they help them with their personal finances. They can help with budgeting, saving and investing. They can also assist with debt management and planning for retirement. They can also help with obtaining loans for education, home and cars. These services also provide access to investment products such as mutual funds, bonds and stocks.