The finance industry provides a number of economic services. Some of these services include banks, credit unions, and insurance companies. There are several types of financial services, and all of them provide a unique set of benefits to consumers. Below, we discuss a few types of financial services and where they can be found.
Credit unions
A credit union is a non-profit financial institution that serves the interests of its members. They offer a wide variety of financial services such as affordable loans, savings accounts, insurance, and more. Members also own a share of the credit union and vote for board members. This type of organization has a different culture and philosophy than banks.
Investment banks
Investment banks provide a variety of financial services for corporations and individuals. Their activities range from arranging monetary transactions and exchanges to market-making and the promotion of securities. They also assist companies in the process of privatization. There are several trade associations representing the investment banking industry worldwide. The most important is the Securities Industry and Financial Markets Association (SIFMA). Most of the larger investment banks are also members of the American Bankers Association, the Securities Industry Association, or the National Investment Banking Association (NIBA).
Community-based nonprofits
The National Family Foundation has launched a new program to provide community-based nonprofits with zero-interest flexible loans and financial counseling. The program, dubbed Rising Together, is designed to help nonprofits that serve communities of color and are led by people of color. The NFF will work with three networks of leaders of color to co-design and implement programs to help nonprofits improve their financial capacity.
Insurance
The financial and insurance services industry encompasses a wide range of services to consumers and businesses alike. Regulatory bodies set the standards for these services. The Australian Securities and Investment Commission (ASIC) maintains a code of conduct for financial service providers. State and territory governments issue licences to conduct business in the industry.
Robo-advisors
Robo-advisors are digital advisors that assist people in investing in their financial accounts. This type of service can be very convenient for the user as there is no human contact required. However, these services may not be suitable for investors who have complex issues or require emotional support. Critics have criticized these robo-advisors for a lack of complexity and empathy. The technology behind robo-advisors is not new. It has been used by human wealth managers since the early 2000s. The first company to purchase the technology was Betterment, and until then, clients had to hire a financial advisor to benefit from this innovation.