The term ‘Financial services’ covers a wide range of activities in the finance industry. These businesses help to facilitate day-to-day living, facilitate trade between countries, and maintain trust. Here are some of the most common types of services. Listed below are a few examples of the types of services offered by financial services. In general, they facilitate domestic and international trade, and help to build a better world. However, the term ‘Financial services’ can be used to describe a wide range of activities.
Financial services are a broad range of activities
The financial services industry encompasses a variety of organizations and activities. The banking sector is a key part of the financial services sector because of its focus on saving and lending. Other activities in the financial services sector include investing, insurance, and redistribution of risk. Large commercial banks, community banks, credit unions, and other financial institutions provide banking services. They earn revenue from interest rates, commissions, and other fees.
They enable domestic and foreign trade
The role of financial services in the economy cannot be underestimated. They enable the use of money to fund various activities. These services facilitate investment, production and savings, and enable the spread of profits throughout the economy. The government monitors economic growth and provides fiscal and monetary benefits to backward regions. Cheaper credit enables businesses and consumers to invest more and create more jobs, while higher profits enable producers to expand their activities. In addition, financial services also contribute to the overall economic growth of the country.
They facilitate day-to-day living
Today, digitally enabled financial services facilitate day-to-day living, plan for emergencies, and contribute to the prosperity of communities. According to a recent report, 1.2 billion adults have opened an account in the past three years, and 69% of all adults now use digital channels to manage their money, save, and plan for emergencies. These services help individuals manage their personal finances and grow businesses. Let’s explore how digital financial services have made our lives easier.
They promote trust
A significant component of financial inclusion is the ability of consumers to use financial services frequently. To do so, banks must build trust with their customers by consistently meeting their promises. Here are three ways to improve trust among consumers in financial services. Ensure high service quality
They are a barometer of a vibrant capital market
Besides providing a vital role in the accumulation of capital, financial services also facilitate the flow of funds internationally. They direct funds from savers to producers and connect borrowers to lenders. If the financial market is active and healthy, foreign funds and other resources can flow into the country easily. This, in turn, improves the country’s economic situation. Financial services are important to the development of the country’s economy and contribute to a vibrant capital market.
They depend on IT systems
Information technology (IT) systems are a vital part of financial services, which are heavily reliant on them. The financial services industry will never go back to paper-based systems. While IT systems are important for enabling business operations, implementing new technology hasn’t always been easy. Various transition and reliability issues can arise, especially when a large number of people are using the same system at the same time. In these situations, new IT systems may be the solution.
They promote relationship marketing
To build trust and loyalty with customers, financial services must engage in relationship marketing. The use of social media to engage with potential clients is a great way to do so. In fact, 42 percent of consumers expect a response within one hour. The benefits of this approach to relationship marketing are immense. They involve consumers directly, provide value in their content, and foster trust between them and the company. Here are some ways to effectively promote your financial services through social media.