The Financial Services Industry
Financial services is a broad industry which includes banks, mortgage lenders, insurance companies and more. These institutions help people to save and borrow money, pay off loans, invest and trade stock. They also provide a variety of services for individuals, businesses and governments.
In the financial services industry, the customer life cycle is an important consideration for delivering products and services to customers at the right time. Banks use data to identify key life events, such as buying a home or starting a family, that indicate that customers are ready for a particular product or service. They can then design offerings that are based on these customers’ needs and interests.
The financial services sector is closely regulated, which makes it essential for companies to operate in an open and transparent manner. Several independent agencies oversee different financial institutions and ensure that they are treating their clients fairly.
Financial services facilitate individual and corporate investments that fuel economic growth. These include insurance, stock brokerages and exchange-traded funds (ETFs), mutual fund providers and private equity firms.
Banks offer services such as checking and savings accounts, credit cards and investment services such as mergers and acquisitions. They earn revenue primarily through the spread on interest rates charged for credit accounts and deposits.
Providing financial protection for both people and corporations, insurance is one of the oldest services in the financial services industry. This includes life, auto, and property insurance.