Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money and invest it. The industry includes credit unions, banks, credit-card companies, insurance agencies and other providers of financial products and services. The financial services industry is a key driver of the economy and plays a critical role in people’s lives, providing them with access to capital through loans and credit cards, investment opportunities to grow their wealth, and protection against financial loss through insurance.
To best serve their clients, financial services firms need to understand the customer lifecycle. Many of the most important financial decisions are made when customers are going through big changes in their lives like getting married, buying a house, or moving to a different state. By analyzing customer data, financial services firms can anticipate these pivotal moments and be ready to offer them a product that will help make the transition smoother.
To provide the best service, financial services firms need to be flexible and adaptable. They must also be willing to embrace new technology and evolve with the needs of their customers. For example, payment service providers like Apple and Amazon are introducing new ways to manage finances for consumers with their iPhones and iPads. This is threatening traditional card issuers and networks because it cuts into their source of revenue by reducing transaction fees for merchants. Similarly, credit-card companies like Rocket Money are offering debt resolution services that give individuals the opportunity to pay less than they owe on their debts.
