What Are Financial Services?

Financial services

The term financial services describes the economic services provided by the finance industry. It includes a wide range of businesses, such as banks, credit unions, and credit-card companies. These companies provide a wide variety of services to consumers and businesses alike. Listed below are some of the main types of financial services. Having a basic understanding of the term can help you better understand the industry.

Payment systems

Payment systems are a key part of financial services. These systems are a combination of physical and electronic methods for processing payments. They include credit cards and debit cards, electronic funds transfers, direct credits and debits, internet banking, and e-commerce. They may be national or international, product or country-specific.

The use of these systems has accelerated over the last 20 years. However, they are also cumbersome, error-prone, and expensive to maintain. They must be replaced frequently, and many payment systems are undergoing major changes.


Deposits are a way for people to hold money in a bank. This can be in the form of a savings account or a money market account. Customers can use the money in these accounts to pay bills, transfer funds to another person, or use them for other purposes. When making a deposit with a bank, it’s important to know how deposits work and how they are stored. Then, you can be sure that you’re working with a reputable institution.

Deposits can be made at a bank or an online banking service. Most people use a checking account to pay their bills. Deposits can be withdrawn at any time, but they are subject to interest. Some banks also have automatic transfer accounts, which allow your funds to be automatically transferred to another account when a predetermined reason occurs.


Investments in financial services are a growing sector of the private equity world, with the growth of the digital economy spurring increased focus on fintech. As a result, the financial services sector is ripe for private equity investments, including niche banks. Several leading private equity firms have already made their first moves in the sector.

In addition to facilitating the transfer of funds, financial service providers offer advice and investment management. Their services may include buying and selling securities, monitoring investments, and settling accounts. They may also help companies raise capital by selling stocks and bonds.

Payment recovery

Payment recovery services are essential to companies and organizations, since they help recover funds that have been incorrectly paid out. These services are usually provided by large firms, but small firms can benefit as well. As with any other type of financial service, consumers should understand their rights when dealing with a collection agency. Although third-party collection agencies are legally allowed to pursue debtors, the Fair Debt Collection Practices Act (FDCPA) prohibits pressure tactics.

Payment market utilities

Payment market utilities are financial services that have emerged from the consolidation of banking groups. They help banks by supporting the development of new products and services, optimising their cost base, or offering a new solution that does not yet exist on the market. These companies generally develop along a common lifecycle, which includes creation by a group of banks, core business development, establishment on the market, and business expansion.

The development of these utilities is an ongoing trend, which highlights their importance and benefits to banks. Examples of such creations include TruSight, which was founded by American Express, Bank of America, and JPMorgan Chase, as well as PensionsInfo, a consortium of Danish banks that aims to commercialize pension-related back-office services. Another notable example is the transition of Nets, which was acquired by a group of private equity firms in 2014, after going through a strategic review.