How do financial services work?

This video gives an introduction to financial services. Financial services are services offered by financial institutions. Such services encompass loans, savings, and the trading of equity.


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Today financial institutions are present all over the world and their presence has promoted the economy. Banks act as a link between borrowers and savers. Individuals or entities with surplus money save their money with retail banks like Barclays or HSBC with interest paid. Now borrowers like the government, companies, or individuals can borrow this money with interest charged. Financial intermediaries raise funds for borrowers looking for a loan, whether for capital to start a business or to expand. The financial services industry also links investors with money and those who require it through trading of equities on stock exchanges like the New York Stock Exchange, Abu Dhabi Security Exchange, and London stock exchange. Borrowers can also be linked to savers by the issuing of bonds. Where the seller of a bond receives money from the buyer with a promise of repayment. Banks also help companies or individuals with ways to raise money. Overall, this video is insightful when it comes to knowing how financial services work.

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