Financial Services

The services that are provided by the finance industry are referred to as the financial services. Before learning the financial services, it is essential to know what the financial industries are. A big range of organizations which mainly deals with the management of money are referred to as the finance industry. Some of the financial industries are the insurance companies, credit card companies, banks, credit unions, investment funds, stock brokerages and other government sponsored enterprises are some big organizations which have invested itself in the management of money. In the United States of America about twenty percentage of the market capitalization of S&P 500 is represented by the financial services.

Gramm-Leach-Biley Act:

Gramm-Leach-Biley Act has utilized the term financial services in the late 1990s after which the term has become so prevalent. This term has enabled lot of companies to merge during this time. There are two different types of approaches that are used by the business of this type. The first approach that is used in here is that a bank will buy an insurance company or the investment bank and retains the original brands that are acquired from the company that is bought. The bank would then diversify the earnings by adding to the acquisition of the company which is held.  There are non-financial services companies that are permitted to operate within the holding company in several places apart from the United States like Japan.

Services rendered by the banks:

There are various objectives for the financial services that are rendered by the banks. The banking service has got several objectives which includes the art of keeping the money safe while permitting the withdrawals whenever it is needed. Banks do take care of the issuance of the checkbooks which enables the bills to be paid and other kinds of the payments to be delivered through post. There are also mortgage loans, commercial loans, and the personal loans which provided by the banks. The mortgages loans are helpful in buying a property, business or homes. Banks do also issue credit cards which are helpful in making post payments after the purchase of the product. The transactions, billing and processing of the credit cards are taken care by the bank.  Even the debit cards are issued by the banks which are often used as a substitute to the checks. The financial transactions are allowed with the help of the Automatic Teller Machines at services branches. There are also electronic fund transfers and wire transfers which are provide between banks.

Questions:

• What are the services rendered by the banks?
• What are financial services?