What is meant by financial services

monetary services in todays society has become more than what a high street bank stub offer you from behind a counter. It has become a diverse functional area within any economic on the wholey adequate society. Throughout this essay I have tried to grasp the chief(prenominal) concepts concerning monetary Services and condense them into an essay of relatively minor proportions in comparison to the subject matter. I promise I nates give you, the reader an insight into the world of financial services in all its diversity.So what is meant by financial services. To be honest there is no straightforward translation much(prenominal) is the spread of financial services crosswise the business spectrum. We can except dam contrastive organisation under the heading of financial services to give you an idea of what financial service intails.Financial service is understood to include banking, insurance, building societies, stock brooking and investment services. These are the 5 main ar eas described by Brian Anderton in his 1995 book current issues in financial services. Brian also plunge it difficult to pinpoint a definitive meaning and found it easier to list organisation associated.Going in to detail when concerning the institution aids in creating a further understanding of financial services yourself. Of the main financial institutions banks are the most common. Banks can be either commercial or merchant. relations with retail and investment respectively. Commercial banks are easily found on the high street and swear on deposits from ordinary people. There is very little interest paid to their savings accounts however savers can borrow sums of money from the banks from which the banks make profit from interest on the loan. Merchant banking is slightly more involved when dealing with finances and in my opinion is more exciting. Merchant banks arrange finance deals and charge for this service. This put is slightly risky and less straightforward. However th e profit rewards outweigh the timescale and effort needed to invest.Investment institutions such as pensions and insurance companies a light up take the liquid earnings of their clients and invest them in a grand range of profit qualification investments. Payment to these companies often takes the form of monthly payments taken by account from wages. These companies give clients a sense of security, and in the claim free years to come, the chance of a puffy windfall payment.Large investment institution deals with modern day trading, the trading of assets and debt. It is not fast companies that flip-flop but individual people. In this hectic rat race people and institutions stand to loose and gain huge amounts of money. Due to the uncertain nature of this trade, people and institutions are extremely keen to lend as this is seen as a stable funds reclaim if it becomes necessary to do so.The textbook definition for gross domestic product- across domestic product is the total value of all the goods and services produced by the residents in this country. The fact that the financial sector and service sectors are growing is in no doubt, neither is the quite mind blowing gain in gross domestic product from years 1952 1992. An overall increase of 21% of EDP from ?381m in 1952 to ?121704m in 1992 this growth is nothing less than remarkable.This forty-year spell has seen such a huge financial achievement in terms of the sheer man of profit gain that the reasons for FS contributing so greatly to the GDP must be assessed.In the past Britain could be seen as a true industrialist profits make and traded through visible earnings such as machinery and farm produce. However the rise in carriage of nation such as the US and major Asian powers, with their seemingly endless resources has seen the death of Britain the industrial workhorse.On this level Britain could have remained at a financial and trading standstill. Not so however Britain has found its new market the f inancial market. And with an educational population Britain set about resurrecting the countries profit making ability through invisible earning of finance matters.The idea of visible and invisible earnings is extremely definitive to Britains economy. So let me explain that apart from obvious differences between visible and invisible.