The financial services industry encompasses many aspects of a person’s relationship with money. It includes everything from securing a mortgage to saving for retirement. The industry also covers the critical financial market utilities that allow people to buy and sell assets.
The diversified range of products and services offered by this sector are designed to manage risk and generate income for individuals, businesses, governments and public institutions. Financial services are also important for the economy: a vibrant capital market is a key indicator of a healthy economy. Financial services firms help companies acquire funds to increase production and reap more profits, while individuals invest in stocks, bonds and other securities.
Insurance services protect against the unexpected, including death or injury (life, health and disability), property loss or damage (homeowners and car insurance), and liability or lawsuits (personal and business liability). Financial services providers are increasingly leveraging technology to improve customer relationships and drive revenue. They are identifying their customers’ key life events and creating a more relevant product portfolio, enabling them to build a long-term relationship with their clients.
Financial services are a critical component of the global economy. A stronger financial services industry benefits everyone – individuals, families, businesses and governments. More people experience financial wellness, which means they are more resilient to shocks, have a better quality of life and are able to save for the future. It also means that they are more likely to spend on local goods and services, which supports local economies.