Financial services are services provided by companies in the finance industry to individuals and businesses. They include banks, credit-card companies, and credit unions. These companies provide many types of services. Some of these services include arranging loans, making investments, and managing money. These companies also provide insurance. The economy would not run as well without these businesses, and they are vital to our society.

A family office, for instance, focuses on the needs of wealthy families and wealthy individuals. Another type of financial service is advisory services, where financial advisers act as a financial consultant and broker for clients. Similarly, insurance companies provide personal lines insurance to individuals, but they also offer commercial coverage to businesses. These companies may also engage in reinsurance, which protects insurers from catastrophic losses.

Using financial services allows people to make purchases they may not otherwise have been able to afford. These companies help consumers increase their standard of living by making it easier to hire a car, buy a house, and invest in luxury items. In addition, they help consumers save money while still enjoying the benefits of their assets.

Various regulatory bodies oversee the industry to ensure that consumers are safe and sound. New financial instruments and the rapid growth of the financial industry can tax the ability of regulators to enforce rules and protect consumers. Regulators also have the authority to take over financial institutions that fail to meet their standards.