Financial services is a broad term that includes a number of different types of services, including banking, insurance, investment management and more. While most people think of these as separate sectors, they often overlap and require a combination of knowledge and abilities to provide quality services.
Banks, or financial institutions, are a primary service sector of the economy. They accept deposits from customers, make loans to those who have deposited money, and issue checks guaranteed by the bank itself. These banks can also offer overdraft facilities and charge card advances.
Insurance is another service sector of the financial industry, which protects borrowers from the risks they take when borrowing money. Insurance companies pay out on losses that occur when someone dies or is injured, and they help consumers protect themselves against large expenses such as health and auto care.
Investment management is a branch of financial services that focuses on helping investors meet their financial goals. This can include developing structured finance products, managing real estate and more.
Brokerage firms are also a part of the financial services industry and help consumers invest in stocks, bonds and mutual funds. These brokers often act as middlemen between the buyers and sellers of these investments.
Other services within the financial industry include investment banking, which involves working to help businesses raise funds by selling shares or issuing bonds. They also advise clients on mergers and acquisitions, underwrite debt and equity, and manage assets such as real estate or investments.