Financial services are the backbone of a country’s economy, allowing individuals with money to save or invest it securely, and enabling businesses to access capital for growth. Companies in this sector offer banking, investment, lending, insurance and more. The industry is facing disruption from new technologies and customer demands while trying to comply with strict regulations.
The growth of financial services ensures that companies are able to acquire funds for boosting their production capacity and reap profits. It also helps the government in meeting its revenue and expenditure requirements. The presence of financial services enables the capital market to be more active and encourages foreign investments in the country. It also promotes the tertiary sector of the economy which is a key indicator for economic development and prosperity of a nation.
It enables consumers to purchase products and services that enhance their lifestyles by converting their savings into buying power. This includes loans like home loan, vehicle finance and hire purchase finance. It also enables them to invest in mutual funds and other securities.
The financial services industry is a major source of employment in the world and contributes significantly to the GDP of a country. It is a highly competitive and lucrative industry that offers plenty of opportunities for those who are looking to start their own business or work in it. It is important to know the various types of financial services available in order to make the right choice for your situation.