Financial services are a broad category of economic goods and services. The industry includes all sorts of businesses, from credit-card companies to credit unions. These services enable people to conduct their everyday lives. They are regulated, which means that they can be considered both a good and a service. The purpose of these services is to make our lives easier.
Financial services are economic services
The financial services industry provides a range of economic services. It includes a variety of businesses, such as credit-card companies, banks, and credit unions.
They facilitate day-to-day living
Financial services are essential to sustainable development, helping people plan for emergencies and day-to-day living. They also enable businesses to grow and contribute to economic prosperity. These services collect, analyze, and present data from diverse sources, making it easier for individuals and businesses to manage their finances.
They are a good and a service
Financial services are a part of the economy that help the nation expand. They provide investment products, wealth management services, and retirement planning to individuals. The government also uses financial services to monitor the economy and give benefits to areas that are underdeveloped. These benefits include more affordable credit, higher production, and higher profits.
They are regulated
Banks and financial services are vital to the global economy, and are heavily regulated. Regulations include capital requirements, interest rate caps, and reporting requirements to ensure transparency and customer protection. These rules help maintain the stability of the economy, protect customers, and achieve desired social goals.
They are digital
Most financial services organizations are working to improve their digital capabilities. The market is changing and organizations must be able to identify opportunities and act quickly to take advantage of them. This is especially true for financial services organizations.
They are a threat
The financial services industry is a prime target for cyber attacks. This threat originates from two primary sources: state actors and organized crime groups. These actors are evolving and moving deeper into the financial system. Figure 2 identifies the different threat groups targeting the banking industry and their capabilities and intent. The threat actors are often using fraudulent codes that exploit payment platforms and eCommerce forms. They are also leveraging stolen banking credentials and bank logs to carry out fraudulent activities.