The provision of several types of financial services by one firm may be beneficial because of:__________

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14-09-2022
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The provision of several types of financial services by one firm may be beneficial because of:__________

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Tundexi Tundexi · Answer 1 · 2022-09-21T17:53:49+02:00

The provision of several types of financial services by one firm may be beneficial because of the economies of scope and problematic because of conflicts of interest.

What is called a financial services?

The sector that provides the financial services belongs to the segment of the economy that is made up of a variety of financial firms including banks, investment houses, lenders, finance companies, real estate brokers, insurance companies etc.

Mainly, the financial services make up one of the economy's most important and influential sectors; it is also the broad range of more specific activities such as banking, investing, and insurance but it is limited to the activity of financial services firms and their professionals, while financial products are the actual goods, accounts, or investments they provide.

However, in conclusion, the provision of several types of financial services by one firm may be beneficial because of the economies of scope and problematic because of conflicts of interest.