Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises.
The primary operations of banks include:
* Keeping money safe while also allowing withdrawals when needed
* Issuance of checkbooks so that bills can be paid and other kinds of payments can be delivered by post
* Provide personal loans, commercial loans, and mortgage loans (typically loans to purchase a home, property or business)
* Issuance of credit cards and processing of credit card transactions and billing
* Issuance of debit cards for use as a substitute for checks
* Allow financial transactions at branches or by using Automatic Teller Machines (ATMs)
* Provide wire transfers of funds and Electronic fund transfers between banks
* Facilitation of standing orders and direct debits, so payments for bills can be made automatically
* Provide overdraft agreements for the temporary advancement of the Bank’s own money to meet monthly spending commitments of a customer in their current account.
* Provide Charge card advances of the Bank’s own money for customers wishing to settle credit advances monthly.
* Provide a check guaranteed by the Bank itself and prepaid by the customer, such as a cashier’s check or certified check.
* Notary service for financial and other documents
Other types of bank services
* Private banking – Private banks provide banking services exclusively to high net worth individuals. Many financial services firms require a person or family to have a certain minimum net worth to qualify for private banking services. Private banks often provide more personal services, such as wealth management and tax planning, than normal retail banks.
* Capital market bank – bank that underwrite debt and equity, assist company deals (advisory services, underwriting and advisory fees), and restructure debt into structured finance products.
* Bank cards – include both credit cards and debit cards. Bank Of America is the largest issuer of bank cards.
* Credit card machine services and networks – Companies which provide credit card machine and payment networks call themselves “merchant card providers”.