Whether you are saving for your first home or looking to invest in some property, financial services help you make big purchases and manage risk. They are also vital to the health of a country’s economy, allowing people to spend and save more freely. However, the sector is incredibly complex, and the many tools and instruments used can be overwhelming for anyone trying to understand how it works.

While most people think of banks, brokers and mortgage lenders when they think of financial services, there is much more to the industry than these three sectors. The industry also includes credit unions, insurance companies, investors, Wall Street and more. The goal of financial services is to provide individuals, businesses and governments with the tools they need to manage their money.

The term ‘financial service’ can refer to a variety of different products and services, from savings accounts to investment portfolios. However, the most important aspect of any financial service is its purpose. Ultimately, a financial service should achieve its desired outcome for both the customer and the provider. To do so, it is important to clearly define what goals your financial service is aiming for and how it can help customers achieve those goals.

A financial good is a product that is consumed or supported by financial services, such as an apartment, car or health insurance policy. A financial service is what enables you to purchase or acquire these goods, such as the mortgages and credit cards that enable you to finance your dream home. It could even be as simple as the broker who searches for or negotiates rates for your mortgage, or the underwriter who creates your life insurance policy.

One of the most important things that a financial service can do is give consumers confidence in making large purchases, which in turn leads to economic growth. A robust financial sector can drive consumer spending and boost business investment, which is why it’s so crucial to the health of a country’s overall economy.

In addition, financial services are important for businesses of all sizes. A healthy capital market can support a company’s growth, which in turn can lead to increased employment. Finally, financial services are vital to the development of tertiary industries like retail and hospitality.

Powerful forces for change are reshaping global business and society. As a new human-centered economy emerges, forward-thinking financial services firms can play a massive role in fostering this change without having to make major trade-offs between profit and positive social impact. Learn about this vision, the forces driving it and how to succeed in a future of greater humanity-centered business.