Why is Financial Services Industry Important

In the world of economy, an Australian financial services industry takes an important role as it helps move the money from entities with excess funds to those who lack in funds. This industry includes firms that are engaged in activities like investing, lending, insurance, and securities trading and issuance. Their clients could be individual businesses, and even agencies of the government.

Furthermore, the financial services industry is highly classified. What this means is that the work and production of the industry are divided among a few companies, but no company holds a share of the market large enough to have a monopoly, or be able to strongly influence the industry.

Types of Businesses in Financial Services Industry:

Since this type of industry revolves around money, here is the list of businesses or services that contributes a lot to the industry by any means.

• Banking

• Insurance

• Securities brokerage or financial advisory services

• Investment banking

• Securities trading

• Investment management or money management

• Securities analysis

• Financial planning

• Wall Street

In a simpler analogy, if there’s a need to put pipes and plumbing to have the water circulated in a home, it is also how financial services work since these services ensure the transferring, investing and spending of our money effectively with least to no risk at all.

Since the start of usage of credit cards up to the increasing availability of monetary transactions through cell phones, it is clear how the industry of financial services is becoming bigger and more convenient for the users and clients. The industry strives to upgrade and offer the best services available to every consumer. And even though we sometimes fail to notice it, the Australian financial service industry is constantly around, managing our money and assets.