The financial services sector provides financial services to people and corporations. This segment of the economy is made up of a variety of financial firms including banks, investment houses, lenders, finance companies, real estate brokers, and insurance companies. Banking and financial services play a vital role in the global economy, providing a wide array of essential services to individuals, businesses, and governments. These services encompass a diverse range of activities, including retail and commercial banking, investment management, insurance, and wealth management. On the other hand, commercial banking caters to the financial needs of businesses, ranging from small enterprises to large corporations. Banks provide credit facilities, trade financing, cash management services, and other tailored solutions to support the growth and operational requirements of businesses.

The financial services industry is one of the most important sectors of the economy. Large conglomerates dominate this sector, but it also includes a diverse range of smaller companies. At its core, retail banking serves as the primary interface between financial institutions and individuals. It enables customers to manage their day-to-day finances, access savings and checking accounts, apply for loans, and utilize electronic banking services for seamless transactions. With the advent of digital technology, online banking platforms and mobile applications have revolutionized the way people interact with their money, offering convenient and secure access to financial services around the clock. As technology continues to advance, the banking and financial services sector faces ongoing transformations.

According to the finance and development department of the International Monetary Fund (IMF), financial services are the processes by which consumers or businesses acquire financial goods. For example, a payment system provider offers a financial service when it accepts and transfers funds between payers and recipients. This includes accounts settled through credit and debit cards, checks, and electronic funds transfers