The economy of every country is created by several fields, named as sectors. Each sector is created for controlling various businesses in various fields. A group of sectors have been taken into account to run a similar type of business. Like, if we consider an example, Telecommunication, then the Telecommunication is the one which we call the business and the ones which are working under this business are called companies who control everything related to mobile or cellular network-telephones. Similarly, the companies that work under agriculture, make up the agricultural sectors. Financial Service is, in a very similar way, is one of the most leading sectors that build the economy of the country.
Financial Services Sector: Definition and explanation
The main motive of the financial and different companies under them is to convey products and assistance to the customer. Financial sectors give finance-related assistance or help to the corporation. Banks, finance companies, insurance companies etc all consist of a large financial sector, the part of the economy. This financial sector is the world’s leading sector for earning and equity in the capitalisation of the market. A large combination prevails over this sector where numerous small, independent companies work. A provider who works under the payment transaction process can give financial help when the system can accept as well as can transfer the money between payers and receivers. The process contains settling of accounts through money transfer options like through credit or debit cards, checks, draft, online transfer or electronically processed transfer of the money. Companies that work under financial services generally manage money. Like, financial advisor advises the public or a person on behalf of a client. This advisors generally doesn’t directly provide any product. Rather, they accelerate the transfer of the money in the middle the savers and recipients of securities and this is something that doesn’t last long. That is the process is small.
Importance of Financial Services: The one without which Economy will be in danger
The financial sector is a significant factor that drives the economy to a higher extent. The graph of the economy remains high when the companies working under finance services is strong. As a result, the companies can handle the risk of the complication happen in the economy. So the rate of growth of the economy directly is proportional to the result of the companies working in the financial services. The graph of the economy also directly affects the population of that country. The more strength economy has, the more population involves in more purchase. This boosts up their confidence level. Whenever the consumers urge for access for bigger purchases, they switch to the financial services sector in order to borrow. The economy of the country starts to go down for the failure of the financial sector. This leads to the unemployment of many people, the economy suffers a lot. In such situations, the companies minimize the interest to increase the economy rate. This situation is called the financial crisis where the companies face the most loss.
Clip: Final Services Contribution