Financial services encompass a wide array of offerings, from insurance and money management to payments and digital banking technology. It’s an industry with a broad scope that impacts everyone in some way, from big banks to small community banks and nonprofits.
The finance sector is one of the most important parts of the economy. It facilitates the free flow of capital across the world and provides a platform for companies to manage their risk.
There are three main types of financial services, which include:
Banks (aka Financial goods) and services
Banks provide financial goods by handing deposits into checking accounts and lending money to customers. They also provide a variety of other services, such as notary services and electronically transferring money.
Investment banks offer a range of financial services, including mergers and acquisitions, underwriting debt and equity, restructuring and investment management. They also offer a range of financial goods, including stocks, bonds and real estate.
Advisors
This branch of the financial services industry provides a range of advice and guidance to individuals and organizations, such as due diligence on investments, helping businesses value assets and assisting in real estate transactions. They also assist in establishing personal financial goals and making plans to achieve them.
Regulatory agencies
Independent regulatory agencies are responsible for ensuring that different financial institutions’ operations uphold transparency and treat customers fairly. Among the most prominent financial service regulators are FINRA and the Office of the Comptroller of the Currency.