Financial Service is that branch of the finance industry that provides economic services and help with the aid of a huge spectrum of organizations. Such organizations include banks and investment houses, credit unions including the credit card companies along with companies like insurance, accountancy and consumer funds. Nowadays, the stock brokerages, real estate and investment funds along with some enterprises that are sponsored by the government also provide financial services to the common mass of public.
In the late 1990’s, the act of Gramm-Leach-Bliley made the term “Financial Services’ quite prevalent in the US. During the period, many of the financial companies merged as the acted enabled them to do so. These kinds of mergers brought two kinds of modus operandi- one where the brand names of the merged companies were kept as it is and the others where the names were dissolved keeping only the name of the acquiring company.
In the United States, the industry of the financial services had its representation of 20% for the capitalization of the market for the stock market of Standard & Poor’s 500 in 2004. The finance industry of the United States had shown a monumental growth from 1947 to 2010 by a range of 40% from the profits that came from non-farm related business. The share for the income of the finance industry in proportion of the GDP mounted to 7.5% from 2.5% in the same time frame. In case of the corporate income, the numbers had risen in the range of 10% towards 20%.