Generally speaking, financial services are an integral part of an economy. They help individuals and businesses make money, while also securing products and services. These companies also serve as a safety net.
These companies are present in every economically developed country. They include financial service providers, banks, credit card companies, credit card networks, mortgage lenders, debt resolution services, tax filing services, wire transfer services, and investment services.
Most financial services companies are not for-profit. In fact, many are nonprofit organizations. These organizations offer advice on money management, and some even provide counseling services.
A large portion of the world is affected by information technology. Computers and internet access have a profound impact on financial services. These companies are also highly dependent on information systems to run efficiently.
For instance, financial advisors facilitate the movement of funds between issuers of securities and savers. They may also help companies raise money by selling shares.
Similarly, payment system providers settle accounts by issuing debit cards or checks. These companies then transfer funds between payers and recipients. These companies also offer rewards to consumers for using their services.
Other types of financial services include insurance. This protects policy holders from accidents, such as fires or floods, as well as large unforeseen expenses.
Another type of financial service is the derivative market, which provides opportunities for a higher yield. These firms develop complex products for high-net-worth individuals.
Financial services companies are typically clustered in regional and national financial centers. These centers are where they offer services such as investment management, brokerage services, and insurance.