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Financial services refer to the commercial financial services offered by the finance sector, which includes a wide array of financial institutions that handle money, such as banks, credit card companies, mortgage companies, investment banks and financial consulting firms. This sector is widely involved in creating new financial products such as derivatives, financial products, insurance and mutual funds. Financial services include all financial solutions and products that enhance the functioning of the financial market. These financial services can be complex and complicated, making it sometimes difficult for consumers to understand and make informed decisions about financial matters.

One sector of the financial service industry that has developed extensively over recent years is savings institutions. Savings institutions are direct lenders that lend money to individuals, families and corporations. They usually have accounts with a local or nationwide network of banks and credit unions. Banks typically provide the funds for savings accounts through checking accounts, certificates of deposit (CD) accounts and credit cards. Credit unions generally provide money from their own funds or membership fees to consumers in the form of checking accounts, direct deposit, CD accounts or certificates of deposit. For a consumer who wishes to build a large portfolio of assets, such as stocks, bonds and mutual funds, both banks and credit unions offer a comprehensive portfolio option.

Another growing area of the financial services industry is the electronic funds market. Electronic funds refer to the various types of automated savings and loan products such as electronic transfer of money and bill payments to various financial services businesses. Electronic funds transfer requires an online banking account, a computer with an Internet connection and an account representative. Popular electronic funds transfer options include direct deposit, e-statements, electronic access to your account and electronic funds transfer for business-to-business transactions. Some electronic funds transfer companies offer direct deposit, but require the customer to authorize the bank to do so.

The third economic development category is the financial sector. This includes banks, brokers, financial planners, investment bankers, insurance agents, registered dealers and other financial service businesses. This sector supports the overall economic growth in the United States. Most of the United States banks are located in the major cities, including New York, Chicago, San Francisco and Los Angeles.

The investment services sector includes buying and selling securities, foreign exchange, options trading and mortgage banking. Investment services include investment securities buying, selling, insurance brokering, mortgage banking, and real estate financing. Most commercial banks and investment services companies are located on Main Street, but there are also many regional banks that provide investment products and services to a limited number of communities. Many brokerage firms offer investment advice and commercial banking.

The final category, governmental and other non-governmental financial services providers, are primarily located on the East and West coasts. These providers include the U.S. government, such as the U.S. Treasury, General Services Administration (GSA), Department of Education, Department of Veterans Affairs, Department of Homeland Security, Federal Housing Administration, Consumer Financial Protection Bureau, Office of Consumer Credit Counseling, and other federal government programs. Some of these providers are independent agencies that have been established to address specific needs of financial markets and sectors. For example, the U.S. government actively encourages banks and other creditors to provide a diverse range of consumer services. Such companies include the Federal Reserve Banks, Federal Deposit Insurance Corporation, and the Federal Reserve Banks.

The main goal of all the financial services industry is to make money. In order to do this they must buy, sell, trade, lend, or protect securities. All financial products involve borrowing funds from other people or companies and then paying them back in kind. A major component of the financial services industry is creating financial products that are backed by certificates of deposit (CD) or other types of securities.

In order to provide financial advisory and related services, financial advisors may charge a fee based on the assets managed through their firm and the services they provide. Professional financial advisors may also offer insurance and investment services to their clients as well. Insurance policies generally come with a set of investment options such as life, health, disability, and annuities.