The Financial Services Industry

Financial services

The financial services industry encompasses a variety of businesses. Banks, insurance companies, and credit unions are all part of the financial services industry. They provide a wide variety of financial products and services to both individuals and businesses. In addition, financial services include the provision of investments and insurance. Those companies that provide these financial products and services may be referred to as investment companies.

Investment companies

Investment companies are financial service providers that manage a client’s money and invest it in various securities. Typically, they assign clients to a fund manager who develops a personalized plan of investment and risk management. This plan may include aggressive investments in high-risk stocks, or a more conservative strategy involving a low-risk, high-yield stock portfolio. The goal of an investment company is to help a client reach his or her financial goals.

Retail banking

Retail banking is a branch of financial services that provides a wide range of services to customers. These services can range from investment and insurance sales to financial planning and cash handling. They can also provide payroll and employee benefits services.

Commercial banking

Commercial banking is a branch of financial services that helps companies manage their cash flows and assets. The services provided by commercial banks range from account transaction and loan disbursement to corporate debt offerings and investment banking. Other services offered by commercial banks include business valuations, fairness opinions and corporate debt offerings. A number of companies also turn to commercial banks for treasury management and fraud prevention services. Some banks even offer remote deposit capture, which lets people deposit checks electronically rather than physically visiting a bank branch. This service is especially beneficial to businesses that deposit a large number of checks over a short period of time.

Insurance companies

Insurance companies provide financial services that protect individuals, businesses, and other entities from harm and loss. Insurance services include life, health, property, and liability insurance. Underwriters assess the risks associated with insuring clients, as well as advise investment banks on risks associated with loans. Reinsurers are financial intermediaries that pool payments from those seeking to be covered with funds from other parties willing to take on the risk.

Factoring companies

Factoring is a way to get short-term cash from a financial institution without a credit check or equity exchange. This type of financial service is especially beneficial for start-up companies and businesses that have variable cash flows or customer concentrations. These companies typically lack the history or credit rating to obtain traditional bank financing, and factoring provides them with the financing they need.

Real estate brokers

Financial services are an important part of the real estate brokerage business. With more buyers looking for home loans, on-site loan officers can be a valuable asset. The Hudson Gateway Association of Realtors is a good example of a company that offers in-house loan services.