Financial services refer to services offered by financial institutions that are some way related to money. These services help you manage your money in a better way and this money include credits, bank deposits, credit card companies, insurance companies, consumer finance companies, stocks and other funds. The financial service company accounted for about 20% – 25% of market capitalization. There are various types of financial services and some of them are discussed below.
Commercial Banks: A bank allows you to keep your money safe and withdraw the amount required when you need. It issues check books so that bills can be paid and other payments can be delivered by post. It provides personal loans, mortgage loans, commercial loans and other loans. Credit card and debit card issuance. Allows access to ATM’s so that you can make transactions anytime and anywhere. It allows net banking and other facilities so that you can make electronic fund transfers. Others can deposit money in your account and the credit is provided to you for the same amount.
Other Bank Services: Other than commercial banks there are other banking services too. Private Banks are institutions that provide services only to individuals who have high amount of investment capacities. Capital market banks assist in company deals and underwrite equity and debt.
Foreign Exchange Service: Forex services are provided by various banks and provide you various services. You can exchange the currency of one country with that of another. Through the foreign currency process, banking transactions can be done in a foreign currency. Wire transfer is another process through which you can send funds to a bank in another country.
Investment Services: Such institutions also provide asset management assistance. They provide you advices to make better investments. It also provides you with hedge fund management services.
Insurance: Insurance is another financial service that you can benefit from. Financial institutes provide you with corporate property and casualty insurance service. Many other types of insurance services are also provided like retirement insurance, life insurance, etc.
Although many of these services have been discussed above, there are many more such services offered. It includes intermediation or advisory services, private equity funds, venture capital, etc.