Financial service is a part a financial system that provides different types of finance through various credit instruments, financial products and services. In financial instruments there comes cheques, bills, promissory notes, debt instruments, letter of credit, etc. In financial products, there are different types of mutual funds extending various types of investment opportunities. In addition, it incorporate products such as credit cards, debit cards, etc. In services there are leasing, factoring, hire purchase finance etc., through which various types of assets can be obtained either for ownership or on lease. There are varied types of leases as well as factoring too. Thus financial services enable users to obtain any asset on credit, as per his convenience at a reasonable interest rate.
Importance Of Financial Service
By the presence of financial services a country is enabled to improve its economic condition whereby there is more production in all the sectors leading to economic growth. The benefit of economic growth is reflected on the people in the form of economic prosperity, wherein the individual enjoys a higher standard of living. It is here the financial services enable an individual to obtain various consumer products through hire purchase. In the process, there are a number of financial institutions that earn profits. The presence of these financial institutions promote investment, production, saving and many more.
Role Of Financial Service Providers
In everyday life, the most typical of the above-mentioned service providers are -
banks
- payment providers
- insurers
- receivables managers
- intermediaries
- investment firms
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