Financial Services

Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-cardcompanies, insurancecompanies, accountancycompanies, consumer-finance companies, stock brokerages, investment funds, individual managers and some enterprises. Financial services companies are present in all economically developed geographic locations and tend to cluster in local, national, regional and international financial centers such as London, New York City, and Tokyo.

The financial services industry plays a vital intermediary role in the world economy as it moves money from entities with excess funds to those with a need for funds. It includes firms that are engaged in activities such as investing, lending, insurance, securities trading, and securities issuance. Its clients are individuals, businesses, nonprofit organizations, and agencies of government. The industry as a whole encompasses and integrates numerous components and services in interlocking and codependent parts. Bank deposits provide the capital for bank loans. The sale of stocks and bonds to investors supports the operations of businesses and governments who issue those stocks and bonds. Insurance contracts help to pool and manage risks.