Financial services encompass a wide range of professionals and products that help people manage their money, including banking, investment, insurance and more. This industry impacts individuals, small businesses, large companies, nonprofits and even the government.
Banks and brokers are two of the most obvious branches of financial services, but it also includes securities traders, hedge fund managers, financial advisors, Wall Street and more. It’s important to understand what financial services is, what it includes and how it affects you.
Banking, which is the largest segment of the financial services sector, involves banks providing accounts and credit products to consumers. It also provides loans to small business and corporations.
Other services include debt resolution, which aims to help a person resolve outstanding payments. It can be a good option for someone who has fallen behind on bills or is struggling with credit card debt.
Investment banking is another sub-sector of financial services. This field is often a slew of professionals, such as equity research analysts and portfolio managers, who develop and market financial products for high-net-worth individuals and institutions.
Angel investors are independent wealthy individuals who provide financing to entrepreneurs and startup firms in exchange for ownership stakes or profit participation. This can be a major help in the growth of new companies.
Insurance is another key sub-sector of financial services, focusing on coverage for assets and liability in the event of death or injury. This can include life, disability, health and auto insurance.