Financial industry consists of a broad range of organizations that deal with the management of money. The organizations or institutions which are a part of financial industry are: Banks, credit card issuers, insurance companies, investment bankers, securities traders, financial planners, security exchanges, etc. The term “financial services” became more popular in the United States due to the Gramm-Leach-Bilely-Act of the late 1990s, which enabled different types of companies to merge at that time while operating in the U.S. financial services industry.
The financial system of a country has a great impact on the economy with the financial services mainly responsible for the economic growth. While determining the financial system of a country there has to be a direct link between the regulatory institutions and the intermediary institutions. The services provided by these institutions are:
Banking services include savings, personal loans, mortgage loans, credit cards, debit card, ATM’s (Automatic Teller Machines), electronic fund transfers between banks, internet banking systems, etc. Other types of banking services are private banking, capital market bank, bank cards etc. Foreign exchange services are provided by many banks, which include services like currency exchange, foreign currency banking, wire transfers, etc.
Investment services include asset management, hedge fund management, custody services. Insurances services like insurance brokerage service, insurance underwriting, reinsurance are provided by banks or the insurance companies. Other financial services provided by finance companies include housing finance, mutual funds, credit reporting, debt collection, stock broking, portfolio management, investment advisory, etc.