Financial services are a wide range of economic services provided by companies in the financial industry. These include banks, credit unions, insurance companies, and tax and accounting firms. A few of the most common types of financial services are listed below. These services are crucial to the functioning of the economy. Without them, businesses cannot function.
Banks
Banks offer a wide range of services, such as assessing investment needs and analyzing asset and liability management requirements. They also offer corporate advisory services and debt and equity underwriting. Some of these services may be offered through branch offices. Often, banks also provide software and other technology to help them run their business efficiently.
Credit unions
Credit unions offer a more personal banking experience than most large banks. They are smaller, locally owned, and run by their members. Credit unions offer many of the same financial services as banks, but tend to charge lower fees. You can also access online banking tools and mobile banking apps, and take advantage of a safe deposit box if you don’t have one available at home.
Tax and accounting firms
Tax and accounting firms provide financial services for individuals and businesses, ranging from tax preparation to debt resolution. These firms may also offer other services, such as financial planning and bookkeeping. These services may attract potential clients, and they can increase a firm’s profitability.
Insurance companies
Insurance companies provide services that protect people and property from loss, death, injury, and liability. They also provide reinsurance to protect insurers from catastrophic losses. Some insurance companies also provide wealth management services.
Private equity firms
In recent years, the private equity industry has grown rapidly, raising concerns about shadow banking and how these firms use their capital. The Securities and Exchange Commission has proposed new rules to better regulate these firms, requiring them to be more transparent about their holdings, fees, and returns.
Non-traditional banks
As the world becomes increasingly connected, non-traditional banks are emerging as a new wave of financial service providers. These digital firms are catering to the unbanked and the under-served. Here, two CEOs of non-traditional banks discuss their vision for the future of the industry.