Financial services are a variety of economic services that are provided by the financial industry. These businesses include banks, credit-card companies, and credit unions. These businesses provide services to consumers, small business owners, and corporations. They also help make transactions more efficient. The financial services industry is a large industry, and many companies provide services within a wide range of sectors.
Commercial banks provide financial services to consumers by guaranteeing checks and offering credit facilities. They also advise businesses on mergers and acquisitions. Investment banks offer both debt and equity to companies. Banks may also offer overdraft agreements and charge card advances to customers. These services help customers manage their finances while meeting their investment goals.
Financial services promote economic growth by facilitating the purchase of consumer products. They also promote investment, production, and saving, which benefit the economy and people. They also help producers access capital, which they need to meet consumer demand. The industry is divided into four broad sectors: banks, insurance, consumer finance, and securities. The main difference between these roles is the nature of their services.
Many banks are looking to acquire other institutions in order to enhance their growth. These firms are often interested in combining their resources and capabilities in order to become more innovative and competitive.