Financial services involve the management of money for individuals and organisations. This includes banking, investing and insurance.
Banks, the main body of financial services, handle the depositing of money and the lending of it to people who need it for a specific purpose. They earn revenue by charging a small amount of interest for credit accounts and by earning more from loans that the customer has deposited with them.
Other services offered in financial services include advice on how to invest, valuation services for businesses and aid in real estate transactions. In all cases, this involves making sure people can make the most out of their money and helping them get a grip on their finances.
Asset management – This is another major sector of the financial services industry, dealing with things like pensions, insurance assets, hedge funds, and mutual funds. It’s important to note that this is not an individual sector, so there are many different companies involved with this activity.
Insurance – This is part financial good and part service, providing protection against death or injury, property loss and damage, and liability. It’s an important area of the finance industry, as it protects individuals from financial losses and helps them to save.
Investment banks – This is a big sector of the financial services industry, where investment capital is supplied to companies in exchange for ownership stakes or profit participation. This sector also encompasses venture capital providers, private equity funds, and angel investors.