Financial Services a Guide to.
This is a wide industry which covers a host of many services. While this article may not indulge deeply into all of them, we shall cover those that are most basic and are popular with most people. One of the most known is the banking industry. The primary function of any bank is to keep someone money safely and allow withdrawal of the said money at the sole discretion of the depositor.
In most cases, commercial banks offer loan services. Loans are basically meant to allow a person borrow money and pay later or at certain stages but with an interest charged on top of what he borrowed. Since the bank has a target persons, this necessitates packaging of the loans differently. Another great service offered by most commercial banks is the fixed deposit accounts. This is whereby; the bank is given a certain amount of money to keep for a fixed amount of time but will pay the depositor some interest. Those companies that have many employees in their payroll, will have an arrangement with the bank to deposit money direct to their accounts. Most banks will want the ties between them and firms to be stronger and therefore some of them will be advisors financially to these companies.
Insurance services is also one of the products under financial services. Insurance has many sub divisions under it i.e. we have health insurance, asset management, car insurance, property, etc. Insurance brokers who work with insurance companies are the main drivers in this industry. Another major branch is the investments companies which outline investment opportunities to clients and then will guide the clients where best to invest depending on the trends.
Then there is the Foreign exchange service where people trade in currencies. This can be done individually by a person if he has the knowledge or by using the experts. This is a trade that has been there for many centuries now and started in the Middle East and trickled down to the other nations as they travelled around the world trading. Another popular service is the stock trading. Stock trading or trading of shares is one way one can increase the money if one happens to know the patterns and market forces.
There are those services that have low regard in this sector i.e. Shylock. Regardless of its perception with people, it considered especially if one needs quick cash. Though it has high interest rates compared to normal loans or lending by commercial businesses, the bureaucracy instituted upon by the lending institutions give popularity to these businesses.
We still have the financial export as a division under the financial services. This is whereby people go out of their current country and go to other lands to carry out financial services to the people there. Some companies will set foot with purposes of expansion to the countries, this shouldn’t be confused with financial export.