Types of Financial Services
Financial services are a broad group of industry sectors that facilitate for individuals and businesses transactions that involve money. They offer an array of products and services that help people secure their money, spend it wisely, save for the future, invest it and achieve their financial goals. Financial services are also vital to the overall health of a nation’s economy.
The most common types of financial services include banking, investment and credit. Each of these sectors has different roles, requirements and career paths but all are focused on managing money.
Banks provide depository services by accepting savings deposits and lending them to borrowers who are seeking capital for their business or personal needs. They also offer payment services like issuing credit cards, electronic transfer of funds and notary services. Other types of financial services that banks offer include private banking for high net worth individuals, brokerage and money market services, mortgages and insurance.
Brokers act as intermediaries between investors and stock markets by purchasing and selling securities on behalf of their clients. These companies also offer investment management services such as mutual funds, exchange traded funds and pension assets. Investment banks work to help companies raise money by underwriting debt or equity, facilitating mergers and acquisitions and providing advisory services.
Credit and financing services are offered through lenders, credit unions, and other organizations that help individuals borrow money to finance purchases or start businesses. This sector also includes financial utilities that provide critical infrastructure for the industry, such as stock and currency exchanges and clearing houses.