Financial services are the services that allow consumers and businesses to acquire financial goods. One straightforward example is the financial service offered by a payment system provider when it accepts and transfers funds between payers and recipients. This includes accounts settled via checks, credit and debit cards, and electronic funds transfers.
The financial services sector is one of the most important segments of the economy. It helps drive a nation’s economy, providing the free flow of capital and liquidity in the marketplace.
The financial services sector is made up of a variety of financial firms, including banks, investment houses, finance companies, insurance companies, lenders, accounting services, and real estate brokers.
When this sector and a country’s economy are strong, consumer confidence and purchasing power rise. When the financial services sector fails, it can drag down the economy and lead to a recession.