Financial services are the non-financial services offered by the finance sector, which encompasses a wide assortment of companies that deal with money, such as banks, credit unions, credit card companies, mortgage companies and payment processors. Financial services include planning, organizing, executing, ensuring and stabilizing resources for long-term benefit in societies and communities. The financial services sector also takes care of accountability of funds to ensure that they are used for the intended purposes. Financial services include risk management, control, assurance and support services. To get more info on financial services, read more here.
The main role of the banks in the financial services sector is to provide credit and loans. The banks lend money and use the funds for various purposes. Some of these purposes include purchasing raw materials, conducting research and development, investing in the equities market, merging with other companies and making commercialization and mergers. Some other financial services that the banks offer include clearing trade debts, granting mortgages, providing credit facilities, dealing with financial instruments like securities, and issue commercial papers. In addition, some banks also undertake activities to minimize the risk of payment of interest and dividend payments.
Another function of the banks in the financial services sector is to invest the assets owned by them in the various forms of financial products such as bonds, shares, treasury bills, savings accounts, commercial paper and mortgage. These investments are made on behalf of customers who want to make long-term profits by generating returns through the investment. The most widely used form of investment in the banking sector is savings and current accounts. Other popular investments in the banking sector include government bonds, commercial paper, foreign currencies, gold, U.S. Treasuries, asset-backed securities, fixed income securities, and certificates of deposits.
Another major objective of the financial services sector is to promote economic growth, inflation and stable exchange rates. Banks play an important role in promoting economic growth by providing monetary assistance to businesses that are facing financial difficulties. They also play a major role in correcting the level of inflation. They infuse money into the economy for the purpose of debt consolidation. They infuse funds into the economy for building infrastructure, providing jobs to people and for other such purposes.
The major objective of financial services is to ensure greater yield to shareholders. They undertake various risks by lending money at high rates of interest. The higher the interest rates, the larger the amount of profit that can be made. Moreover, the higher the yield on the invested money, the greater are the risks borne by the shareholders of the bank. You can also visit this page to get more info.
For further details, you can browse various internet sites. You can also consult the banks and financial service providers for detailed information. Banks offer many online resources for guidance in dealing with money and saving accounts. You can check with the online financial services comparison site for getting free online savings account advice. Check out more info related to this article here: https://en.wikipedia.org/wiki/Financial_system.