Financial services is a wide term that covers all the various products and services within the finance industry. It encompasses everything from insurance and money management to payments and digital banking technology. It has a multitude of stakeholders and moving parts-from credit card issuers and processors, to legacy banks and emerging challengers. With financial activity becoming increasingly digitized, especially as consumers are choosing to manage their finances from home amid the ongoing coronavirus pandemic, financial institutions and startups are sharpening their technology and expanding remote services.
Benefits of Financial Services
The presence of financial services in a country brings about economic growth and development. This is because it increases production in all sectors which leads to economic dynamism. This also results in a better standard of living for the people of the country.
It provides an opportunity for the producers to increase their production and sell their products in a competitive market. This is because the presence of financial services enables them to raise funds from investors like merchant banker through the new issue market. It also encourages foreign investments.
These funds are used by the companies to boost their production and generate more profits. This in turn attracts more investments from the investors which in turn creates more demand for the product.
The presence of financial services enables the consumer to obtain any type of product on credit, according to his convenience. This includes the purchase of automobiles, houses and other essential items. It also enables the consumer to save for his future.