In this essay I will be focusing on the financial industry, where I will outline the industries structure, a brief background on how it was established and highlight any recent mergers or anti-competitive behaviour that has taken place. In addition, I will also discuss any possible future developments that might take place.
Financial services are economic services that are provided worldwide by the finance industry the headquarters of these industries are mainly based in London, New York and Tokyo. In broad finance services main aim is to mobilise and allocate savings. Thus, financial services are a process where a significant amount of funds are moved from a great number of savers, to make them readily available to those who are in need of it, the specifically aim or are biased to corporate customers as they generate the most revenue, thus a promised return. Therefore, financial services sector is a significant area and it’s essential for industrial developments. For instance, a well-developed infrastructure in the finance industry allows the movement of savings effectively to numerous consumers and thus resulting the development of the country. In addition, it also can be involved in any activities that include any form of savings being transformed to investment. The aimed market or consumers of this industry can be individuals, businesses, non-profit organisations or agencies of the government. The firms that participate and engage in activities such as investing, lending, and insurance are firms that make the structure of the financial industry. Thus, any bank deposits made, provide the capital for bank loans. Hence, the auction of and bonds or stocks to any investor constructs the base for those that issues the stocks and bonds. Insurance plays a key role as it helps manage risks.
They are certain types of businesses in the industry that make a significant contribution and it builds the base and the structure of the industry these businesses include; banking, insurance, investment banking, securities trading, financial planning and wall street. The definition of financial services itself is “a professional service involving the investment, lending, and management of money and assets.”