Financial Services

Financial services

The financial services industry provides a range of economic services. Companies that offer these services include banks, credit unions and payment-card companies. Financial services are essential for many businesses. They help people to manage their money and meet financial goals. Financial services also include payment recovery services. Here are some examples. If you need more information, please see our articles on Investment banks, Discount brokerages, and Payment market utilities.

Payment recovery services

Payment recovery services specialize in finding, recovering, and resolving errors in payments. Payment errors can cause large companies to suffer significant losses. Smaller businesses may also turn to payment recovery services for assistance.

Investment banks

Investment banks provide financial services to clients that need capital raising. These services include debt and equity offerings. They also provide credit facilities and provide advice to companies. Many of these banks earn their revenue through advisory fees. Many clients turn to them for their capital raising needs, because of their expertise in valuation and experience in bringing companies to market.

Discount brokerages

Discount brokerages have emerged as a popular choice for investors. They are trusted to manage large sums of investors’ money. Charles Schwab, for example, had nearly $8 trillion in client assets as of February 2022. Another industry leader, Fidelity, had 40 million clients. These companies have attracted investors with their low costs and user-friendly platforms.

Payment market utilities

Financial services companies are increasingly pooling their resources, expertise, and capabilities to form Payment market utilities. These entities provide back-office and other services to fulfill a need that has emerged in the market. As such, market utilities are financial services that help businesses and consumers conduct their business.


The insurance industry is a subset of financial services, and its products protect consumers from injury, liability, and property loss. These products may also provide liability coverage for businesses and individuals. There are several types of insurance agents, which include insurance brokers, insurance underwriters, and reinsurers. A broker represents the insurance carrier or insured, while an underwriter acts as a risk assessor for insurers. A reinsurer is a company that offers insurance policies to other companies.


Underwriting is the process by which financial services companies assess the risk of providing loans. It involves the verification of borrowers’ credit history and financial records to determine their ability to repay the loans. The process can take anywhere from minutes to weeks.

Payment systems

Payment systems are arrangements between two or more parties for transferring money from one place to another. They include both visible and unseen arrangements. Increasingly, payment systems are being viewed as a catalyst for innovation and economic growth.