Financial services are a key part of our lives. Financial services include banks, insurance companies and other institutions that help individuals, businesses and organisations save and make money.
These institutions are governed by government laws and regulations. They promote saving and investment, and they protect people from unforeseen expenses and business conditions. The financial services industry is large and offers a variety of career options.
Some of the most common financial service providers are banks, insurance companies and brokerage firms. They provide services like loans, investment advice and insurance products. They can also help clients buy and sell securities.
Financial services are vital for a healthy economy. They ensure that money goes to the right places, and that the economy grows in a balanced manner. Governments oversee several of these industries, including banks, insurance and securities.
In the United Kingdom, regulators have taken a lead in ensuring that customers are treated fairly. However, regulators cannot always catch a person’s behavior or stop a problem from happening.
Some of the largest banks in the United States are Wells Fargo and American Express. They are well known for their credit card offerings. They also focus on travel and co-branded cards.
A growing number of digital financial services are available. These are becoming more accessible, but they must offer clear advantages over cash. This means that the service must be easy to use, reliable, and secure.
While the government regulates most financial services, it may not cover new activities. For example, some financial institutions now operate in the derivative market, which can provide higher yields.