Financial services refer to a wide range of businesses that provide economic services to the public. These businesses can include credit unions, banks, and credit-card companies. They can help you save money, administer payment systems, and give financial advice. Whether you need advice on how to make the most of your savings or want to borrow money for a specific purpose, financial services can help you.
Financial services are a source of finance and a source of savings
Financial services provide consumers with access to savings and finance. These services should meet the medium and long-term needs of consumers. In particular, they should cater to young and old people, be cost-effective and capitalise on the strengths of informal providers. They also should consider the needs of specific niche markets.
Financial institutions must attract large numbers of small savers and net borrowers to maintain their viability and sustainability. Large numbers of small savers will generate a substantial volume of funds, enabling institutions to achieve self-sustainability. According to the World Organization for Credit Unions (WOCCU), credit unions typically serve four to eight savers for every borrower. Increasing this ratio will improve a credit union’s liquidity condition.
The importance of market studies for financial services is often overlooked. These surveys analyze the type of services provided and how consumers use these services. They also assess the competitiveness of services, such as interest rates and waiting periods. The results are crucial for guiding managers in product and service development and marketing activities.
They administer payment systems
Financial services are companies that manage payment systems and processes. These companies accept deposits and make loans, and profit from the difference. They also handle account settlement and fund transfers. They also help companies buy and sell securities and raise money. Some of these services also provide advice and invest client funds. There are several different types of financial services, each with their own specialties.