Financial services are the activities that help individuals, businesses and governments manage their money. They include deposit-taking, lending, investing, credit, and payment systems. These activities, in turn, allow people to buy and sell goods and services. In a healthy economy, these activities stimulate spending and investment. But when a country’s financial services sector falters, it can cause a recession.
While the financial services industry is comprised of many different segments, globalEDGE breaks it down into a few key categories:
Banks – Providers of deposit-taking and loan services, as well as financial markets utilities.
Insurance – A service that provides protection against death or injury (e.g. life insurance, accident and health insurance) or against property loss or damage (e.g. home or car insurance).
Private equity – Investment capital provided by private investors for companies in exchange for ownership stakes or profit participation.
Securities – A service that assists people and businesses buy or sell shares, bonds, mutual funds and other financial instruments on a public stock market.
Debt resolution – Helps individuals and businesses pay off debts.