Financial services are the industries that enable the free flow of capital. They include banks, credit unions, insurance companies, investment firms and others. These organizations are the critical utilities that provide consumers with the ability to access funds when they need them most. Whether a consumer is seeking to purchase an automobile, a house or even just a new dress, the financial services industry ensures that they can receive the necessary funding.
The financial services sector consists of thousands of depository institutions, providers of investment products, insurance companies and other credit and lending organizations. It also includes the providers of crucial financial utilities such as money market mutual funds, exchanges that facilitate stock and commodity trades and global payment systems like Visa and MasterCard. In addition, the sector consists of hundreds of investment and brokerage firms as well as private equity funds, venture capital providers and angel investors who supply investments to companies in return for ownership stakes or profit participation.
As the economy shifts from traditional models of growth to one that is increasingly dependent on corporate responsibility, this sector has become more prominent than ever before. With that in mind, it is essential for those interested in pursuing a career in this field to understand the full scope of the industry.
Financial services are the industry that make it possible for a person to obtain a mortgage loan, open a checking account, cash a check and purchase other financial goods such as stock and commodity assets. It also enables the government to raise short-term funds in the money market and long term funds through the securities market. It also helps to increase the sale of domestic and foreign goods through factoring and forfaiting companies.