The financial sector is an important field of the economy that includes firms and institutions that provide financial services to commercial and retail customers. This sector is composed of a vast range of industries. Institutions like banks, investment companies, insurance companies, and real estate firms come under the umbrella of the financial sector.
The financial sector is one of the most crucial working tools of many developed economies. It is composed of brokers, financial institutions, and money markets. All these collectively establish an economy which has a vital role to play in everyday living.
The structure of the financial sector has undergone many important changes in recent years. Banking sector especially plays an important role in collecting the money from savers and provides the funds for those who are interested to invest in a business. If a country wants the economy to be stable, it is important to have an efficient financial sector. This sector helps people in the field of advancing loans for businesses so that economic activity can expand, banks can grant mortgages to homeowners, insurance policies can be established to protect people, companies, and their assets. It also is very much helpful for the people who are saving for retirement and makes a way out for job seekers.