Financial services are the institutions, advisors and firms that help people manage their money and meet their financial goals. They provide a variety of products and services, including credit cards, savings accounts, mortgages and loans. They also offer investments, insurance, retirement planning and tax services. The industry is incredibly diverse, with a wide range of companies and organizations offering their services. Many of these businesses are for-profit, though there are also nonprofits that provide financial services.

The sector encompasses a broad range of activities and offerings, from credit card payment systems to global banking networks. It also includes asset management services, which manage investment portfolios and monitor market conditions to optimize returns and meet clients’ financial goals. Insurance is another important aspect of the financial services industry, and it includes life and non-life insurance. It can cover property loss or damage, death and disability, and liability.

There are also a number of other services offered by the financial services industry, including foreign exchange and wire transfer services, private banking for high net worth individuals, and securities research. Some of these are separate entities, but others are part of larger financial services conglomerates. These firms often create subsidiaries that offer a specific type of financial service, such as a brokerage firm or an insurance company. They then combine these subsidiaries under one parent company, which can save on costs and simplify business operations. Regulatory agencies are an important part of the financial services industry as well, and they oversee different aspects of these businesses to ensure transparency and accountability.