Financial services refer to the entire system of promoting investment, production, saving and also distribution of money. It is this money that makes it possible for individuals to purchase goods and services they cannot easily produce or afford by themselves. It helps in the economic growth by increasing production in all sectors thus bringing about increased employment, income and demand. In addition to this, it ensures equal distribution of funds to primary, secondary and tertiary sectors. It also enhances the development of a country’s service sector and provides more job opportunities for people.

A number of institutions which are involved in this business include commercial banks, investment agencies and stock market brokers. Some are consolidated companies that operate in more than one sector of this industry, while others offer specialized services, such as mortgage loans or insurance policies. A common feature of these is that they act as intermediaries between depositors and borrowers. They earn revenue primarily from fees, commissions and the spread of interest rates between loans and deposits.

The strength of a financial services sector is vital to the prosperity of a country’s population. It is through this that consumers are able to buy consumer goods and services that they would otherwise not be able to afford, as well as borrow money for larger purchases like cars or houses. It is also through this that investors are able to diversify their portfolios and earn higher yields from their investments.