What are the different types of financial services?
Financial services include a number of businesses that are dealing with money management. These include many different types of organizations such as banks, investment companies, credit card companies, insurance companies and even government programs. Financial services can also refer to the services and products that money management organizations offer to the public. Banks
are one kind of financial service organizations. Banks generally work by providing people a protected and safe place to store their money. Banks usually invest the saved money of their clients for the bank's profit and at the same time pay a small amount of interest to those who keep their money in savings or account checks. Banks
often provide a number of financial services, including loans, mortgages, checks and credit cards. Some banks are known as private banks and offer services only to those who have a high net fortune. In general, private banks offer wider rings of services to their clinthose than other banks. These services usually offer financial products for investors for purchases such as mutual funds. The money invested in the investment service is usually managed by a service for the profit of an individual investor or a group of investors. In addition, they can provide investors with professional advice in exchange for payment.
Insurance or agents are companies or individuals who are hired to find suitable insurance plans for their clients. Insurance providers offer plans that are designed to postpone liability for the risk of loss from one entity to the other in exchange for a predetermined amount. As a result, the second entity, usually the insurance provider, is the first entity, usually an individual or company for responsible loss. The person will therefore pay the health insurance provider, such as a recurring fee to make the providerresponsible for the payment of medical accounts if that person becomes ill or injured.
Credit card companies are companies financial services that provide credit lines in exchange for interest paid for money that consumers borrow when they charge a card. The card pays for the purchase, but does so by basically issuing a loan with a high interest.
Other types of financial services include professional consulting services, where a financial expert will offer financial advice to clients, private capital funds, risk capital investors or angels investors.