The Role of Financial Services in Society
Financial services are a group of businesses that provide different types of financial products and services. They include credit card companies, bank providers, insurance, and other business that help people manage their money. These businesses offer a variety of products and services that are essential for people to live their daily lives, such as loans, mortgages, and investment portfolios. They also play an important role in the economy of a country, as they help to develop the tertiary sector and improve overall living standards.
Financial institutions are the backbone of the financial services industry, providing the majority of its revenue. These include banks, savings and loan associations, and credit unions. They earn their income by charging fees, commissions, and other methods like the spread of interest rates between deposits and loans.
Insurance is another major part of the financial services industry, which helps people to cover expenses and losses due to unforeseen events. These can include health, car, home, and life insurance, among others.
Another way that financial services contribute to society is by making it easier for consumers to buy assets and goods, such as cars, homes, and furniture. These purchases are made possible by hire purchase and leasing companies, as well as housing finance companies.
In general, professionals in the financial services sector are quite happy with their jobs. They rated their job satisfaction levels between 9.6 and 10. When they work in large, global organizations, the opportunity to travel is often present.