What Exactly Does Financial Services Mean?

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Financial services is a term used to refer to the services provided by the finance market. It’s also the term used to describe organisations that deal with the management of money. Examples are the banks, investment banks, insurance companies, credit card companies and stock brokerages. 

The major categories of financial institutions include central banks, retail and commercial banks, internet banks, credit unions, savings and loans associations, investment banks, investment companies, brokerage firms, insurance companies and mortgage companies 

The types of financial services vary according to each financial service provider for example banks offer loans or the opening of various accounts for their customer’s whether it’s a cheque or savings accounts or even access to debit and credit cards. 

The role and importance of banking is that banks provide funds for the business and play an important role in the development of a nation. It acts as an intermediary between people having surplus money and those requiring money for various business activities. 

Then the arrival of internet-only banks offered online banking and other financial services without a network of branch offices. These so-called “virtual” or “direct” banks were able to pass savings in labour and overhead costs on to their customers by offering higher interest rates on deposit accounts, lower loan costs and reduced service fees. 

While insurance companies such as Hollard, Old Mutual and Federal offer financial services of helping people to insure their belongings of home or car etc as a means of protection from financial loss.  

Accounting firms from the big four Deloitte, PricewaterhouseCoopers, KPMG and Ernst & Young. Down to small business accounting firms offer financial services of accounting and auditing, tax filing and planning, management consulting and specialty services.

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