Financial services are economic services provided by the finance industry, which encompasses a broad range of service sector firms that manage money, including credit unions, banks, credit-card companies, insurance providers, investment funds and brokerage firms. These organizations play a vital role within a capitalist economic system, as they connect savers and spenders, and manage risks to ensure prosperity and stability.
These institutions also provide loans and other credit services to individuals and businesses. The availability of these services helps to drive business expansion, job creation and economic growth. However, due to the risk associated with these loans, they are usually accompanied by high interest rates.
Some financial services include brokerage, credit card and payment services, securities trading, mortgages and real estate services. Others include asset management, insurance and investments. Many of these services are provided by large, global institutions with operations across the world. However, smaller regional firms can also provide a full suite of financial services.
The financial services industry is regulated by governments at the local and national level. These institutions act as an agent of the government to develop the economy, and are subject to a myriad of laws and regulations that govern their activities. For example, a government may regulate the amount of money that can be invested in a particular industry. This limit is a way to control risk and protect investors.
Moreover, financial institutions are often subject to strict compliance requirements. They must adhere to a number of laws to protect the rights of their customers, and they are required to disclose any potential risks or issues with their products. These institutions also work closely with regulators to ensure that they meet all regulatory requirements.
As a result, the financial services industry is highly competitive and incredibly lucrative for those who have the right skills and expertise. It is not uncommon for employees in this industry to receive generous salaries and benefits, as well as excellent promotion opportunities. However, it is important to note that the nature of the work in this sector means that it can be demanding and stressful at times, particularly during periods of high market volatility.
Salesforce’s Financial Services Cloud (FSC) is an intelligent customer engagement solution designed with the specific needs of the industry in mind. It comes out-of-the-box with banking data modelling, wealth management dashboards and reports, financial accounts objects and rollups, and tools for needs assessment and task orchestration. This enables financial services firms to increase client trust and loyalty by delivering a more personal, relevant experience. For example, Spar Nord utilised FSC to digitalise slow, manual processes, prioritise referrals and improve their customer engagement. This allowed them to better meet their customers’ needs and realise value faster.