The industry provides a wide range of economic services. Some of the major companies that provide financial services include banks, credit-card companies, and credit unions. Financial services are important to all sectors of the economy and are vital to the lives of millions of people. The industry provides a range of services to the general public and businesses.
The financial services industry depends on trust. Consumers rely on financial service providers for the information and advice they need to make smart financial decisions. For instance, when you buy a life insurance policy, you expect the company to be around if something happens to you. You also expect them to pay out your beneficiaries in the event of your death.
Financial services also help consumers improve their standard of living. In many countries, the tertiary or service sector contributes more to the economy than any other sector. For instance, financial services make it possible for consumers to buy a car or house. These services allow consumers to enjoy luxuries while saving for the future.
The financial services industry is vital to the economic growth of a country. Increasing consumer confidence and purchasing power are a direct result of a strong financial services industry. Financial services promote investment, production, and savings. By ensuring that the economy remains strong, they encourage growth in all sectors of society. They also provide solid jobs for millions of people.