Financial services is a broad sector that includes banking, insurance, securities trading and more. It’s an important part of any economy because it allows people to save their money and borrow it when they need to, so they can buy what they need.
Banks are an important part of the financial services industry because they’re in charge of collecting deposits from those who have money, pooling those funds and lending them to people who need it. They also provide other financial services such as check cashing and issuing credit cards.
Brokers are another major part of the financial services industry because they’re involved with making investments on behalf of their clients. They’re also responsible for ensuring that their clients understand the risks associated with specific financial products and services.
Investment banks are another part of the financial services industry because they’re the ones that help companies raise capital. They do this through mergers and acquisitions, debt and equity underwriting, and investment management.
Private equity and venture capital firms are also part of the financial services industry because they provide funding to startups in exchange for ownership stakes or profit participation. This is a very lucrative way for small businesses to get started, and it’s a big reason why technology firms were so successful in the 1990s.
The financial services industry also has regulatory agencies that oversee and regulate its members, uphold transparency and ensure their clients’ interests are protected. These agencies are essential to a healthy financial system and a strong economy.