Types of Financial Services

Types of Financial Services

Financial services

Whether you’re an investor or just someone who is interested in the business of finance, you need to know what the various types of financial services are. These services can include insurance, Investment banks, credit card companies, and payments and digital banking.


Whether you are in the industry or just dipping your toe in the waters, this industry is big business. It’s not just the big boys, though. Insurance is just one of many sectors that touch on the big (big) blue. Aside from the usual suspects, such as banks and insurance companies, there are smaller players with a stake in the pie. These include insurance agents, brokers and financial advisers. They may be located all over the globe, from the far-flung corners of the United States to the apex of the globe, Australia. A good place to start is with the Australian Securities and Investments Commission (ASIC) which has a comprehensive list of codes and standards for the industry.

Investment banks

Essentially, investment banks are financial services firms that raise money for companies and governments through the sale of securities, bonds, equity offerings, credit facilities, and private placements. They also provide advice on corporate finance and mergers and acquisitions. They are regulated and must adhere to strict guidelines.

Investment banking is a highly lucrative industry. In recent years, the number of hedge funds has grown dramatically. Currently, hundreds of billions of dollars are at stake in the financial market. As a result, the market has become increasingly competitive, making money management a vital part of institutional investing.

Credit card companies

Besides offering financial services, credit card companies make money by charging fees to consumers and businesses. They also charge interest on unpaid balances.

Credit card companies are divided into two main categories: issuers and networks. Issuers are banks or credit unions that issue cards to consumers. Networks include American Express, Visa, MasterCard, and Discover.

Issuers determine the credit limit for a card and issue it to the consumer. Some cards offer rewards programs as part of their offerings. These programs can vary from one card issuer to another. Some credit card companies waive interest charges for payments on monthly balances.

Payments and digital banking

Whether it is to manage cashflows, purchase products and services or meet everyday banking needs, payments are essential to enabling the modern consumer experience. Financial institutions must offer digital payment solutions that are seamlessly integrated into their overall digital banking experience. In addition, new payment vehicles must be ready to accommodate the modern customer journey.

In the next three to five years, payments will play a pivotal role in shaping the financial experience of a large segment of the population. This will be achieved through better interfaces and smoother transitions between payments. It will also include increased usage of wearable technology.