The financial services industry is a large and diverse sector that encompasses many different entities and activities. It includes banks and credit unions, investment firms and companies, insurance companies, credit-card issuers, and even global payment providers like Visa and Mastercard. These entities offer a wide range of services including direct saving and lending, investment, insurance, and the redistribution of risk.
The industry is a key driver of the economy and is vital for the health of both individuals and businesses. Its presence ensures that those with money are able to find those who need it, and vice versa. It also encourages production and consumption by providing the capital that companies need to grow and expand. It is often a barometer of the health of an economy as a whole, with the more active the capital market is, the better the overall economic condition.
The industry also provides a variety of important services for consumers, such as debt resolution and international payment systems. Moreover, it helps to ensure the efficient functioning of the primary, secondary, and tertiary sectors by providing adequate funds for their development. This in turn leads to a healthy growth of the economy and enhances employment opportunities.