From time immemorial, the phrase "financial services” has been commonly used especially concerning money issues. For better understanding of its meaning, it is important therefore to first understand what finance is. Finance relates to raising of money through issuance and sale of debt or equity. It is a branch of economics whose main goals relate to allocation of resources, management of resources, how the resources are acquired and investments. In general, finance implies interacting with matters that deal with money and the markets. The concept of finance considers time, money and risk and how they relate or interrelate.
A service is an equivalent of an economic good that is intangible. The person or firm offering the service boosts the ability, resources skills and or experience to offer a balanced satisfaction of client need while at the same time remaining relevant and functional in an economy. Financial services therefore are those services that are offered by the institutions, which deal with the management of money and other factors that relate to the flow of money in an economy. To clarify on this, a service and the financial service provider possess various characteristics that make the service distinct. For instance, the concept of intangibility also referred to as insubstantiality, perishability as regards to time and reversal of a service, inseparability, simultaneity and variability which refers to the distinctiveness or uniqueness of a given financial service.
Following the above discussion, it can be correctly put that a financial service refers to those facilities such as savings accounts, leasing, money transfers, checking accounts, confirming among others that are offered by players or organizations in the finance industry. These players include banks, credit unions, stock brokerage firms, insurance firms, and foreign exchange among others. Financial services are many, wide and varied hence many institutions or organizations are involved in offering them. Other well known financial services include debt resolution, private equity, intermediation venture capital conglomerates as well as both private and public equity. The above directly implies that financial services in general relate to all those issues which affect the circulation of money and how they interrelate.