The financial services industry is a massive one, covering all manner of business activities that deal with money, from banking and credit to investments and payment systems. This sector includes a wide range of entities, from central banks to securities trading firms and financial advisors. And it doesn’t just encompass Wall Street and large institutions: The financial services industry includes small businesses, nonprofits and even the government.
But it’s important to note that financial services don’t include every entity that deals with money, as there is a difference between a financial good and a service. A financial good is something that lasts, like a mortgage or insurance policy. A financial service is the transaction that goes along with acquiring that good, such as the process of applying for a loan or getting an appraisal on a property.
Some examples of financial services would be a debt resolution service, such as Rocket Money, which helps consumers pay off their debts by negotiating with creditors to settle for less than what they owe. Another example is a private bank, which handles investment and wealth management for a select group of high-net-worth individuals. And some companies offer bundled financial services, such as investment banking and brokerage services under the same brand.
In the case of a bank, this may be done to streamline operations or to make it easier for customers to do business with them. In addition, many companies offer financial services remotely, such as online banking and digital investment portfolio managers.