Financial services: Finance industry consists of a wide variety of businesses that deal with managing money including banks, credit card companies, consumer finance companies, insurance companies, real estate funds, and investment funds.
Banks: Commercial banking services: It is commonly referred as ‘Bank’. A commercial bank distinguishes itself from an investment bank, which is a financial service which doesn’t lend money to the business directly, but instead facilitates raising funds from other companies through stocks or bonds.
Operation of banks includes:
- Provides commercial loans, personal loans, and mortgage loans.
- Issues debit cards which can be used instead of checks.
- Issuance of credit cards.
- Keeps your money safe and allows withdrawals when needed.
- Provides overdraft agreements.
- Provides ATM or financial transactions at the bank.
- Provide internet banking system.
- Provide a service to notarize documents.
- Provides cashier checks.
- Sell investment products like investment funds.
Investment Banking Services:
These services facilitate purchasing and disposing of financial securities among buyers and sellers. Most brokerage services are offered online these days.
This banking service is provided only to individuals that have high net worth.
Foreign exchange services:
They are provided by banks and foreign exchange middlemen throughout the world.
- Currency exchange where foreign currency banknotes can be purchased by the clients.
- Wire transfer and Remittance: funds can be sent to international banks abroad.
Asset management – These are firms that deal with managing investments for customers.
Hedge fund management – This service aims to realize large gains by using high risk methods.
Insurance brokers: They shop for insurance.
Insurance underwriting: Insurance underwriters underwrite insurance for individuals.
F&I: It is a service offered primarily at asset dealership.
Reinsurance: This is insurance that is sold to insurers to protect themselves from losses in their insurance business.
Factoring: Accounts receivable financing is also called Factoring. It is a transaction in which the business sells its invoices or accounts to a commercial financial company which is the third party known as “Factor”. The business need not wait 30-60 days for customers’, payment instead the business can receive cash more easily.
a factoring company can differ between financial service providers.