Financial services refer to a wide range of economic services provided by businesses in the finance industry. These services help people with day-to-day expenses, encourage investors to diversify their investments, and protect savers from debt.
Promotes Economic Growth
Financial services contribute to economic growth by promoting investment, production, and savings. They also help individuals and businesses prepare for unexpected expenses and long-term goals.
Maintains Liquidity
Financial services help maintain sufficient funds in an economy by linking those who need them with those who have them. These services include banking and credit-card companies that offer loans, as well as credit unions and other savings accounts.
Raises Standard of Living
Financial Services provide a variety of convenient investment options, such as mutual funds, that can grow people’s savings. They also provide a wide range of insurance policies that can protect people against harm caused by illness, accidents, and other situations.
Market Dynamics
The financial services industry is constantly evolving to meet the needs of a savvy, tech-savvy customer base and to stay competitive. As a result, legacy banks are competing with new challengers who offer innovative features like lower overdraft fees and user-friendly apps.
Heterogeneity
In order to meet the needs of clients, financial institutions provide a variety of customised financial services. They are also continuously in touch with their clients to learn about their needs. They can then use that information to create products that are tailored to each client’s specific requirements.