What is the difference between a salesforce person account and Individual account model in Financial services cloud?

Individual Object Model

The individual model is used as a combination of Account and Contact. This is used when you're dealing with Company. Here company information is stored as Account and since a company can have multiple contacts, this information is stored in Contact object. These are most often called Business Accounts.

Salesforce Person Account

If you’re doing business with a single person, like a solo contractor or an individual consumer, you use a special account type called a person account. Person accounts are similar to business accounts, but because they’re meant to record information about an individual person, person accounts don’t have their own contacts.

Use Case:

Ideally when you're dealing with an individual, a personal account should be the default choice however if it's a company then you should follow the Individual Object model. This way it will keep your data clean. By default in the Financial Service Cloud, person accounts are enabled. However there are few considerations when dealing with a Person Account. Refer to this person's account link.