Financial services are the products and services that support investment, production and saving. These include everything from banks and credit unions to insurance companies and credit-card providers. They also include all the critical financial utilities that make it possible for consumers to buy, sell and trade securities and commodities.

As the world becomes more interconnected, financial services are growing and evolving to meet changing consumer needs. For example, the availability of credit allows people to buy bigger and better homes and cars than they could otherwise afford. These new markets have prompted innovation in the industry, as banks and other institutions try to find ways to reach more customers with their offerings.

In addition to traditional banking and insurance, other forms of financial services have become increasingly important in recent years. For instance, venture capital providers, such as private equity funds and angel investors, provide investment capital to young companies in exchange for ownership stakes or profit participation. This type of finance has been particularly important to technology firms.

Another key subsector of the financial services industry is debt resolution. This includes services that help consumers pay off their debts, or even avoid bankruptcy. Similarly, credit-card providers offer debt relief to their customers who are struggling with high interest rates and fees.

While the financial services industry may seem all-encompassing today, it wasn’t always this way. Until the 1970s, each sector of the industry more or less stuck to its own specialty. Banks offered checking and savings accounts; loan associations provided mortgages and personal loans; brokerage companies focused on stock investments; and credit-card companies primarily provided credit cards.