Financial services are a broad category of economic services provided by the finance industry. These companies include banks, credit unions, and credit-card companies. In addition to the traditional banking services, financial services also include investments, insurance, and payment recovery services. Here’s an overview of financial services. Let’s also examine the many rewards programs offered by credit cards. The benefits of these programs are wide-ranging, and you’ll soon see why many people choose to use these services.
Payment recovery services
Payment recovery services are debt collectors that attempt to collect a debt that has not been paid. They typically purchase debt from an original creditor and pay only pennies on the dollar or 1/10th of what it originally cost. In some cases, these companies may not own the debt but are hired to collect for another company. They may attempt to contact debtors by phone or mail. Whether the debtor accepts the debt or not, the company will report it on their credit report, which can damage their credit score.
If you’ve ever applied for a policy with an insurance company, you’ve probably heard about insurance underwriting. Insurance underwriters review a client’s information to determine whether it’s risky enough to offer a policy. Underwriting involves a number of factors that insurers consider, including age, gender, health, medical history, and lifestyle habits. Depending on your state of health, these factors can influence your insurance rate.
As a financial services professional, you may provide investment advice to clients. Many of these clients have specific investment goals. For example, they might want to accumulate emergency funds, or invest their money in stocks. Some are looking for high liquidity, while others are hoping to outpace inflation. Whatever your reasons, investment management is a great way to protect your money. You can expect to pay less tax if your investments are well managed.
Credit card rewards programs
The rise of credit card rewards programs has spurred a growing ecosystem dedicated to gaming the system. One of these influencers, The Points Guy, has built an extensive network of websites that teach consumers how to maximize the value of credit card rewards programs. Although card rewards programs are beneficial to all consumers, they are especially valuable to households with limited incomes. Small businesses benefit from the increased transaction security and lower risk associated with accepting rewards cards than cash.
Online lending marketplaces
The rapid growth of online lending marketplaces for financial services has led many large banks and institutions to form partnerships with these companies. These new synergies have created more markets for both lenders and borrowers. Since its inception in 2009, marketplace lending has been a dynamic source of small business financing, with volumes doubling every year to $3 billion in 2013 and projected to grow exponentially through the rest of this decade. MUFG Union Bank N.A. is a leading example.