What is the Financial Services Sector?
Globally, the financial services industry leads the world in terms of earnings and equity market capitalization. Large conglomerates dominate this sector but it also includes a diverse range of smaller companies. Commercial banking services form the foundation of the financial services group. The operations of a commercial bank include the safekeeping of deposits, issuance of credit and debit cards, and the lending of money. An investment bank typically only works with deal makers and high-net-worth clients, not the general public. These banks underwrite deals, secure access to capital markets, offer wealth management and tax advice, advise companies on mergers and acquisitions, and facilitate the buying and selling of stocks and bonds. Financial advisers and discount brokerages also occupy this niche. Hedge funds, mutual funds and investment partnerships invest money in the financial markets and collect management fees in the process. These organizations require custody services f