Types of Financial Services

The financial services industry provides a wide range of services to individuals and businesses. The companies that provide these services include banks, credit-card companies, and credit unions. Each company provides a different type of financial service to consumers and businesses. Listed below are some of the types of services provided by these companies. These include lending, investments, and banking.

Financial activities

The finance industry provides many economic services to individuals and businesses. These businesses include banks, credit-card companies, and credit unions.

Banking

Today’s banking industry is being disrupted by new technologies and challenger banks. To stay competitive, banks must embrace continuous technological innovation.

Loans

A loan is a sum of money that is given to a borrower for a specific purpose. The borrower is responsible for paying the money back with interest. This can be done through a variety of methods. Some loans require collateral, and some lenders charge a higher rate of interest for riskier borrowers. Mortgages are one example of this type of loan.

Credit cards

Credit cards are used in a variety of industries. The primary purpose of credit cards is to allow consumers to pay for goods and services. However, there are several complexities involved in the credit card value chain. The four primary actors involved are the card issuer, the merchant, the acquiring bank and the customer.

Insurance

Insurance services cover a variety of financial risks, including liability and property losses. They also protect people against lawsuits and death. Different types of insurance services include health insurance and life insurance. Insurance intermediaries match those seeking coverage with those willing to accept risks.