Financial services encompass a multitude of services in the world of finance ranging from banking and insurance to wealth management and portfolio management. Financial services typically involve activities of financial firms and professionals hired by them and financial products refer to the goods, account, and investments they offer. According to IMF, financial services are really processes through which businesses or consumers get financial goods. Here are the top 7 financial services across the globe:
- Banking: This financial service involves handling of deposits into savings accounts, checking accounts, and loans to consumers. Interests banks earn through loans are given back to the customers that have put their money into the bank. Banks are however no longer limited to offering traditional services; they now provide services dependent on both fund-based like angel financing, portfolio management, private equity, leasing, mortgages, and non fund-based activities like custodian services, credit card services, credit rating, mergers and acquisitions services, project advisory services, merchant banking services, etc.
- Advisory: These financial services will assist businesses and individuals with a plethora of tasks. For instance, they will offer advice on investments, valuations for businesses, help in real-estate, etc. So, advisors are called in to direct people or enterprises in the right path when they must make key financial decisions. Visit https://www.laweekly.com/how-to-buy-amazon-stocks-and-shares-the-ultimate-guide-by-finixio/ for a valuable investment suggestion from Finixio.
- Wealth Management: These are one of the most important financial services as they enable people to save their hard-earned money smartly and get back returns on investments wherever possible. For instance, you may be advised to sign up for a 401K program by your employer. The common services offered here include management of customers’ wealth that is distributed across multiple financial instruments like insurance products, equity, mutual funds, debt funds, derivatives, commodities, real estate, etc. This depends on the individual customer’s financial targets, risk tolerance, and time horizon.
- Insurance: This common financial service requires you to have an in-depth understanding of what insurance is all about. People generally possess some degree of understanding about this and they know they have to pay annually or monthly charges that would work as a safety net in times when you need emergency funds. You can find different types of insurance, including auto insurance, home insurance, renters insurance, life insurance, etc.
- Mutual Funds: Companies offering these services will offer investment options where many parties share money collectively to purchase securities. Such investments are handled by professionals and not the individual investors. Unlike traditional investments like stocks and bonds, the buy-in here is not that huge. This makes mutual funds a perfectly safe option for people that are reluctant to part with their money. Since this investment is diversified, your risks are automatically mitigated.
- Tax Consulting: This refers to financial services within the audit and tax domains. Here, services can be categorized depending on business and individual clients and include individual tax services where the professionals will determine tax liability, tax-savings advisory, file tax returns, etc, and business tax services that will determine tax liability, tax compliance advisory, and transfer pricing analysis. In auditing, the professionals will offer solutions like internal audits, statutory audits, risk audits, transaction audits, stock audits, etc.
- Portfolio Management: This refers to a customized and specialized group of solutions to help individuals attain their financial targets. This is provided by portfolio managers whose job is to evaluate and optimize investments to benefit their clients and can encompass a variety of assets like real estate, equity, debt, etc.