The term “financial services” refers to the economic services provided by companies in the finance industry. The term covers a wide variety of businesses, including banks, credit-card companies, and credit unions. However, it also includes businesses that provide specialized financial services. For example, an investment bank provides financial advice to investors. Private equity firms are also part of the financial services industry.
Credit unions
Credit unions provide a variety of financial services, ranging from consumer loans to business loans. Consumer loans fall into two categories: mortgage loans and non-mortgage loans. The majority of consumer loans fall into the non-mortgage category, and include loans for vehicles, credit cards, and personal debt consolidation. Credit unions also offer holiday promotional loans, which are aimed at helping members pay for special events, such as Christmas or Thanksgiving.
Banks
Banks offer many services to meet the diverse needs of their clients. Different banks offer different types of services in order to stay relevant and attract new customers. It’s important to understand the types of banking services that are available in order to make the most informed decision for your financial situation.
Credit card companies
Credit card companies offer a variety of different types of cards. There are major card issuers such as Capital One and Chase, and then there are smaller banks that issue credit cards for consumers. The major card issuers account for about 75% of all credit card balances. These companies are often associated with perks and benefits for cardholders, such as no annual fee or low annual percentage rate.
Private equity firms
Private equity firms are investment firms that focus on investing in various types of companies. Some specialize in acquiring promising young companies with high growth potential, while others specialize in failing companies that need restructuring and turnaround. Private equity firms often buy out all of a company’s shares, replace its management, and improve its financial performance. Eventually, these firms sell the company to another company or bring it back into the public market with an IPO.
Insurance companies
Insurance companies provide financial services by underwriting risks and providing a contingent promise of economic protection. These services are available for everyone, including businesses, individuals, and the general public. These services fall into two main categories: life insurance and property insurance. General insurance is typically short-term, while life insurance is more permanent. Property insurance covers all sectors of the community and lasts as long as the policyholder lives. The process of insurance underwriting requires access to extensive information about risks.
Tax preparation
Tax preparation is a financial service that helps businesses and individuals manage their finances. It is part of the finance sector, which provides services including banking, investing, and insurance. Tax preparation can be a complex process, so it’s important to work with an experienced tax professional.
Currency exchange
A currency exchange is a business that allows you to exchange different currencies. This process typically happens over the counter, and can be done at an airport, bank, or hotel. Currency exchanges make their money by charging a fee to customers and taking advantage of the bid-ask spread. The bid price is the price the dealer is willing to accept for a currency, and the ask price is the price at which they are willing to sell it. A currency exchange also goes by the name bureau de change. This service is not to be confused with the foreign exchange market, which is a financial marketplace where traders trade currencies.