Financial services are vital for businesses and individuals alike. They help people get the money they need through loans, allow families to save for mortgages, education, and vehicles, and safeguard households and businesses from unforeseen disasters with insurance. A strong financial sector means consumers have more money to spend, which in turn allows businesses of all sizes to thrive.

A healthy financial services industry also supports millions with solid-paying jobs. But the state of the industry isn’t just about companies and employees; it’s also about the health of a country’s economy and its citizens. When the finance industry falters, economic growth slows and everyone feels the effects.

One of the biggest problems in the financial services industry is lack of trust. Consumers (both savers and borrowers) must trust that they can actually find those who need their money, that the money they lend will be returned, and that intermediaries will act responsibly.

Many countries rely on regulatory bodies to oversee different financial institutions and uphold transparency. This includes financial regulators, central banks, credit rating agencies, and other government-sponsored organizations.

A healthy financial services industry also encourages innovation and entrepreneurship. For example, if a business wants to expand and invest in new technology, it may seek venture capital or an angel investor. The former is independent wealthy investors who are willing to take a risk on a small or medium-sized company, while the latter is a group of companies that are willing to provide a portion of their profits to a startup.