Financial services include an array of economic services provided by the finance industry. These services are provided by various businesses, including banks, credit unions, and credit-card companies. They are essential to our daily lives and are often considered essential to our well-being. Whether we need a loan to buy a house, fund a college education, or pay for a family vacation, financial services provide the tools necessary to make our lives better.
Financial services are vital to the functioning of the economy. Without these services, people who save their money might find it difficult to get loans from other people. This could prevent people from buying many goods. Financial services can help individuals maximize their profits. These services can also be used to provide insurance to protect against losses. Financial services also help companies acquire and lease high-value assets.
Financial services include accounting, tax preparation, and wire transfer services. Commercial banks also provide credit facilities and underwrite public and private sector debt and equity securities. Many commercial banks also advise on mergers and takeovers. Structured finance firms develop complex products for high-net-worth individuals and institutions. Finally, investment management services manage assets to achieve specific investment goals.
A healthy balance between regulation and interest rates is essential for the financial services industry to thrive. A moderate interest rate environment is conducive to new product development.