The Financial Services Industry

The financial services industry is the sector of the economy involving businesses that manage money. This includes companies that accept deposits and lend funds, and those that provide investment products and advisory services. The sector is a vital component of the economy, providing millions with access to credit and saving tools for their daily lives, as well as the ability to invest in their communities and futures. It also drives the economy by facilitating free-flowing capital, managing risk, and serving as an important part of the global financial infrastructure.

Companies in this sector offer a wide range of services, such as deposit-taking; lending of all types; financial leasing; payment systems (including credit and debit cards); securities trading and brokerage; and asset management. They also provide credit and insurance to individuals and businesses.

A healthy financial services sector is vital to a country’s economic growth, development, and prosperity. It provides people with access to loans for mortgages, cars, and education, safeguards their property and health through insurance policies, and allows businesses to grow and expand by offering them the means to invest in themselves and in new projects.

The financial services industry encompasses a large number of subsectors, each with their own specialties and offerings. However, there are some key areas that every business within this sector must master to be successful. These include retail banking, credit and debt resolution, credit card processing, and international payments.

In addition to these core areas, financial services companies must constantly innovate and adapt to meet their customers’ changing needs. As such, the industry is seeing a growing number of non-traditional players from other sectors entering the fray, such as retailers and technology giants.

As more businesses and consumers shift to digital, it’s critical for those in the finance industry to embrace the change, or risk being left behind. That’s why Infosys BPM is bringing digital capabilities to the heart of financial services. From customer onboarding and KYC, to fraud detection, digital transaction processing, and payment solutions, we are helping legacy and emerging challengers deliver the best experience for their customers.

The industry is made up of several key segments, including retail banking, commercial and corporate banking, and investment banking. Retail banking services focus on consumers and provide account services such as checking and savings accounts, credit cards, mortgages, and loans. Commercial and corporate banking offers similar services to corporations, as well as investment services like mergers and acquisitions. Investment banking, on the other hand, offers complex products such as structured finance and derivatives to high net worth individuals and institutional investors.