Financial services are the economic activities that enable people to manage their money and assets, such as mortgages, loans, stocks, bonds, insurance, and investments. In addition to assisting with transactions, these industries also collect and organize large amounts of data on customers and their interactions with them — including every swipe on their debit or credit card or call to a service center.
Banking – The largest component of the financial services industry, banks are the places where people keep their money. They offer a variety of different products, including checking and savings accounts. Banks can also help people obtain loans for things like buying a car or starting a business.
Investments – Another popular type of financial services, many investors use banks to purchase and sell shares in companies. They can then use those shares as collateral to secure further purchases. This can be done through the stock market or in a more informal way.
Insurance – Most people have some idea of what insurance is, but it’s important to know that there are a number of different types, such as health, auto, and life insurance. This is a great way to protect yourself and your family against unexpected expenses or losses, and it’s easy to find insurance agencies that specialize in the type of policy you need.
Asset management – Some of the most common and complex jobs in the financial services industry are those that involve managing assets. They include asset managers, who work with clients to set goals and invest their assets in order to meet them.
Debt resolution – These individuals can help you get out of debt, whether through debt settlement, negotiating with credit card companies or filing for bankruptcy. It can be a difficult process, but they can provide invaluable support.
Payment recovery – These individuals can assist with recovering funds that have been paid out to a vendor but haven’t been returned. This is a growing area of the financial services industry and it can be a valuable service to offer.
Customer experience – A major challenge for financial services firms is delivering the right service to each customer at the right time. Creating an individualized and seamless experience will help companies attract new customers, retain existing ones and improve their bottom line.
Risk and regulation – The finance industry is subject to extensive regulations, which can be challenging to navigate. These regulations can prevent businesses from offering new products or services, and they can also make it more difficult to innovate.
Competition – The competition in the financial services sector is intense. It is challenging for financial firms to compete in a world where technology and the Internet are disrupting traditional business models.
In some cases, the competition is so fierce that it becomes necessary to merge with other companies in order to survive. This is especially true in the U.S. where some banks have merged with other financial services companies in order to diversify their earnings and offerings.