Financial services are an important part of the economy. They help individuals and businesses manage their money, make investments, and protect savers from debt. In addition, they help people make long-term plans and prepare for unexpected expenses.
The industry is regulated by agencies such as the Federal Deposit Insurance Corporation and the Securities and Exchange Commission. These agencies oversee the activities of banks, credit card companies, and other financial institutions.
Banking and insurance are the most popular types of financial services. They allow customers to save money and earn interest, and can also be used to finance major purchases or consolidate debt.
Investments and redistribution are other types of financial services. They help customers invest their money in stocks and mutual funds, and can be a way to grow your wealth.
These services also make it easier for people to pay for goods and services. They can be accessed through debit cards and online accounts.
Market dynamics depend on the socioeconomic change in a country, and these firms have to constantly redefine and refine their products to match that change. This can either be a proactive strategy, or a reactive one, depending on what the market wants.
Production and supply of financial services is a complex process that involves a lot of people-intensive activity. Unlike other types of services, financial services have to be produced and supplied simultaneously, in order to meet customer demand.
The industry in India is characterized by a large number of public and private sector institutions that provide a wide range of financial services to both individuals and businesses. The changing demands of a tech-savvy customer base and intense competition have created new opportunities for financial services companies to expand their businesses.