A financial services company offers a range of investment and financial services to the public with the aim of money management.
What Does Financial Services Company Mean?
What is the definition of financial services company?Put broadly a financial services company seeks to foster economic growth by bringing together those who can supply money through saving accounts, and those who need capital through loans. However, the financial industry has developed into a sophisticated pool of products.
Therefore, nowadays financial services companies are offering more than intermediary services. Following the global financial crisis, many financial service companies have lost a great share of their clients as well as their reputation, struggling nowadays to regain a share of the good standing they once had. Today, many financial services companies have a strong presence in the insurance market as well as in the real estate.
Financial services companies operate in the finance industry, and they may be banks, insurance companies, brokerage firms, investment banks, credit card companies, and so on, depending on the product they offer.
Banks offer both corporate banking and retail banking services and can be commercial banks (retail clients, SMEs), investment banks (institutional clients, corporations), savings and loans institutions (S and L), and credit unions (non-profit, low-interest rates).
The insurance sector includes companies that offered the highest level of insurance coverage for a premium, and they can be either health insurance companies or property insurance companies (property perils).
The securities firms, also known as brokerage firms, offer equities, bonds, mutual funds, derivatives, asset-backed securities (ABS), collateralized debt obligations (CDOs) and other financial products that investors can trade in the debt capital markets and the equity capital markets.
Investment companies offer diversified products, which are actively managed by professional fund managers. Investment companies may include the real estate investment trust (REITs), mortgage companies (mortgage funding), hedge funds (funding of credit capital) and so on.