Financial services is a broad term for the various institutions and companies that deal with money, credit and investments. These include banks (which pool funds from depositors and lend to qualified borrowers), credit unions, savings and loans associations, factoring and forfaiting companies, credit-card issuers and networks, debt resolution firms, global payment systems and exchanges for stock, commodity and derivative trades.

Basically, financial services provide a means for individuals and businesses to invest their assets for profit. This is accomplished by providing a variety of banking services including checking accounts, credit cards and online trading platforms. It also involves providing insurance to protect against risk of unforeseen events, such as illness, injury or death.

Additionally, financial services facilitate domestic as well as foreign trade by promoting the sale of goods and services through factors and forfaiting companies, while providing credit facilities to producers and businessmen. These help promote investment in the local economy and increase the availability of capital for production, employment and consumption. The presence of financial services also helps to improve the economic situation in backward regions by providing fiscal and monetary benefits through tax concessions, cheaper credits and other facilities.

The industry also provides debt relief for consumers who are in over their heads with credit card and mortgage payments as well as loan repayments. Additionally, it provides business consulting and accounting services along with credit-card processing and acquiring networks. Additionally, the industry includes asset management companies that manage pensions, mutual funds and insurance assets as well as payment-processing software and technology.