Financial services include the making, investment and management of money for both individuals and businesses. They can be as diverse as trading shares in the stock market to putting money away for a rainy day. Banks are one example of a financial service. They store money but they don’t just sit in their vaults, they lend it out to people who want to buy a car or a house. These people pay the bank back plus interest for the use of their money.
Another kind of financial service is insurance. This provides protection from financial loss caused by unforeseen events such as illness, death or property damage. It can also protect against the risk of losing a business through fluctuating business conditions.
Financial services also help companies raise the capital they need to expand and grow. They provide loans to new and growing businesses or they can provide debt securities that investors can buy and sell. They can even facilitate payment transactions between individuals and businesses by processing electronic fund transfers, issuing credit or debit cards and managing payment systems. The industry is large and complex with many stakeholders and moving parts – from traditional banks to new technology companies. The success of the industry is a major factor in the overall health of a country’s economy, and it can have a direct impact on the standard of living of the general population. It can be a lucrative career choice for people who are quick-thinking and team players.