The financial services industry includes a variety of different institutions. These can range from Banks to Credit unions, Tax and accounting firms, Insurance companies, and more. These institutions provide many benefits to society, including a more stable economy and increased goodwill. There are many benefits to financial services, including diversification and increased yield.

Banks

Banks provide a range of financial services for businesses and individuals. These services range from accepting deposits to providing loans and facilitating the transfer of funds. They can also provide investment advice and manage clients’ funds.

Credit unions

Like a bank, credit unions offer a range of financial services, including consumer loans. Consumer loans fall into two broad categories: non-mortgage and mortgage loans. Non-mortgage loans generally cover credit cards, personal loans, and vehicle loans. Credit unions also offer special holiday promotional loans and debt consolidation loans.

Tax and accounting firms

Tax and accounting firms perform a variety of services that help the public and business owners keep their finances organized. They help with business valuation, which is necessary for private investor transactions and for business expansion. They also prepare pro forma financial statements for new businesses, which help them obtain funding for their start-up costs or expansion plans. These financial statements are based on industry data and current company financial records to give a realistic assessment of a company’s worth.

Insurance companies

In the financial services industry, insurance companies offer a variety of products and services that protect consumers against economic risk. They can help protect against property loss, liability, and lawsuits. There are two main types of insurance products and services: property insurance and life insurance. The latter is generally a shorter-term contract, while life insurance lasts until the insured dies. Both types of insurance are available to individuals and businesses in every sector of society. In order to assess risk, insurers have to access a wide range of information. Information efficiency is a key advantage for insurance companies.

Online lending marketplaces

Online lending marketplaces are a fast-growing sector. The number of customers has increased significantly over the past decade, and the companies have improved their processes for loan applicants. They have also branched out into more structured networks, which include partnerships with banks and institutional investors. Some of them provide loans directly, while others participate in securitization transactions.