Financial services

The term financial services describes a variety of economic services provided by the finance industry. The industry is vast and includes a variety of businesses, such as banks, credit-card companies, and credit unions. Some of the services offered by financial institutions are insurance and payment recovery services. Other financial services include investment banks. In addition, financial institutions offer other services, such as payment systems.

Investment banks

Investment banks provide a variety of financial services to investors. They facilitate capital flows by providing financial consultancy services and acting as a bridge between issuers and investors. They also help companies go public by helping them raise capital. Depending on the nature of the business, investment banks may even act as bailiffs to collect money from those who default.

Payment systems

Payment systems are the technology infrastructure of financial services that make commercial transactions seamless and efficient. They connect a country’s financial activity to the global economy and are maintained by its central bank and government regulators. A country’s payment system is a collection of institutions, technologies, and rules that link bank accounts and facilitate the transfer of monetary value using bank deposits. Its structure and operations reflect a country’s financial history, banking infrastructure, and communications platforms.

Insurance

The insurance industry includes a variety of services that help people protect themselves from the risk of death, injury, or property loss. Many of these services also help protect people from liability and lawsuits. The insurance industry includes many types of professionals, including insurance agents and brokers. Agents represent insurance carriers, while brokers represent insureds. Brokers shop for insurance policies on behalf of their clients. Another type of insurance professional is an underwriter. Underwriters assess the risk involved with insuring clients, and they also advise investment bankers on the risk of loans. Reinsurers are companies or wealthy individuals who provide insurance services.

Payment recovery services

Payment recovery services are companies that purchase debt and try to collect from consumers. They usually get the debt by buying it from the original creditor for pennies on the dollar or even a fraction of the cost. The consumer may not even realize that the company owns the debt, but they may have been paid to collect it on behalf of another company.

Investment market utilities

Financial market utilities provide various financial services to market participants. These services may include a financial clearinghouse, a central securities depository, and an interposition service between counterparties in financial markets. These institutions also provide securities accounts and central safekeeping services.

Traditional banks

Traditional banks provide a wide range of financial services to individuals and businesses. Many offer a local branch and ATM network. Larger institutions may have thousands of ATMs across the country. These banks typically do not charge their customers for using their ATMs. In-person customer service is also offered at some traditional banks. Additionally, most traditional banks provide web-based and phone support. They also offer relationship banking, where customers develop a personal relationship with a bank staff member.

Categories