Financial services are the economic services tied to finance, including banking, insurance and investment management. These services provide a necessary component for the functioning of a free market economy by providing individuals and businesses with access to capital, markets and other resources they need to grow and thrive.
Individuals rely on financial services providers to offer deposit accounts (such as checking and savings accounts), credit card services, mortgages, loans and other forms of financing. Financial services also help budding entrepreneurs to start businesses and expand their current operations by offering venture capital and angel investing.
Investors rely on the research and brokerage services offered by financial institutions to make informed investment decisions. This includes providing access to stocks, bonds and mutual funds. Additionally, investors enlist the help of investment advisors to guide them in their choices.
A strong financial sector allows a country to be competitive in global markets and promotes the overall well-being of its citizens. However, too much reliance on the sector can lead to boom-and-bust cycles that result in recessions.
The financial services industry is incredibly complex and comprises a wide range of professional firms that offer a variety of products and services. To succeed in this industry, professionals must embrace the need to amplify, catalyze and connect their roles in order to create value for customers. This requires a shift in mindset from traditional transactional approaches to customer-centric ones that focus on building relationships, enhancing experiences and creating new opportunities.