Financial services are economic activities that involve the management of money. They include banks, investment firms, insurance companies and credit card companies. They also include government agencies and the providers of critical financial utilities.
Banks – banking is an important part of financial services because it helps individuals and businesses save money. It is also the place where people can borrow money to buy things they need or want.
Commercial banks provide a variety of services such as checking accounts, savings accounts, overdrafts and mortgages. They also offer internet banking systems to allow customers to manage their account on the web.
Loan associations provide loans to consumers, including mortgages and personal loans. They often earn their income from fees and commissions for providing these services.
Brokerage companies are middlemen that connect the buyers and sellers of stocks, bonds and mutual funds. They also conduct research and help consumers make financial decisions.
The Federal Reserve Bank is a type of financial institution that regulates the amount of money in the economy by adjusting interest rates and participating in open markets. It also helps control inflation by controlling the supply of currency.
Financial firms often provide a lot of on-the-job training to their employees and encourage them to continue their education so they can keep up with the ever-changing world of finance. As a result, people in this field are often encouraged to be highly intelligent and quick-thinking. They are also expected to be team players and are likely to be promoted based on merit rather than tenure.