Financial Services

Financial services include everything that relates to money. That includes banks, brokers, mortgage lenders and credit card companies. It also includes investment firms and insurance agencies. It’s a broad sector, and it includes companies that serve small businesses, large corporations, nonprofit organizations and even governments.

Banks provide many financial services, including checking accounts, transferring money electronically and issuing credit cards. They also offer investment services, such as helping clients buy and sell stock and bonds. Insurance agencies provide personal lines of insurance such as life, health and property coverage. Underwriters, who assess risk for insurers, are a subset of this group.

Other members of this group are debt resolution services, payment providers that facilitate stock, derivative and commodity trades, and financial market utilities, such as clearing houses and exchanges. Global payments systems and networks, such as Visa and Mastercard, are also part of this group. These companies often serve customers worldwide.

Companies that provide specialized financial services, such as investment management and hedge fund services, are also included in this group. These firms invest other people’s money for a profit. They may also take on a specific project or business venture in return for an equity stake and a share of the profits.

Some financial services companies are conglomerates that operate in more than one sector of the industry. For example, some banks have brokerage divisions and insurance departments. This allows them to gain a competitive edge by offering more complete products to their customers.