The Financial services industry provides a vast array of economic services to its customers. These businesses include banks, credit unions, and credit-card companies. While some of these businesses are part of a much larger industry, they are all classified as part of financial services. Financial services are a vital part of modern society.
Some of the financial services that are provided by these organizations include banking, tax services, investment management, and stockbroking. Some also provide advice to customers. These professionals assist individuals and companies with investing and saving their money. Some also offer debt resolution services. Other types of financial services include accounting and tax services. In the United States, there are various agencies that regulate these industries.
As the financial industry changes, customers are also changing and demanding new services. New technologies and disruptive innovations are affecting the industry. Increasingly, financial services firms must meet evolving customer demands or risk being supplanted by more agile competitors. These changes are also creating a dynamic market for partners. Many nontraditional banks have emerged to compete for market share. Online banks, for example, offer user-friendly apps and reduced overdraft fees.
Financial services play a vital role in the economic health of a country. A healthy financial services industry helps boost the purchasing power of the population. By helping individuals acquire consumer goods, financial institutions earn profits and promote investment, production, and saving. The financial services industry also helps businesses and individuals reduce the risk of business failures or natural disasters.