Types of Financial Services

Financial services

Financial services include the economic activities of the finance industry. These include businesses such as banks, credit unions, and insurance companies. These organizations offer a wide range of financial services to consumers. These businesses also provide a range of other services to individuals, such as tax and accounting services. For more information, see our article on the different types of financial services.


Banks offer a wide range of financial services, ranging from gauging appropriate interest rates to assuring the safety of deposits. They also meet the financial needs of governments and businesses. They generate revenue from interest rates, fees, and commissions.

Credit unions

Credit unions offer a range of financial services for individuals, families, and businesses. They often offer online banking, mobile deposits, and other financial products tailored to the needs of their members. In addition, they have account types suitable for all stages of life, including checking and savings accounts, as well as credit and debit cards.

Tax and accounting firms

Tax and accounting firms provide many financial services, including the preparation of tax returns. They can also help with accounts receivable, vendor payments, and payroll processing. They can also ensure that necessary federal paperwork is filed and completed when onboarding employees or independent contractors. They can also help with year-end payment documents.

Insurance companies

Insurance companies are financial services that calculate the probability of someone having an accident or contracting a disease and charge a fee to insure that risk. For example, Bob the Actuary may not know if he’ll suffer a heart attack in a year, but he can calculate the probabilities of 1 million other people having the same event. He can do this by building large pools, which allow him to average out the probabilities.

Discount brokerages

Discount brokerages provide a wide range of financial services to their clients. They can help you manage your investments, trade stocks, options, and even real estate investment trusts. Some discount brokerages charge no upfront fees and offer robo-advisors that manage your portfolio. These services don’t offer you personal guidance, but they do offer the tools you need to make wise decisions.

Private equity firms

Among the private equity types that see increased investment activity are financial services firms. The industry has experienced a strong run in the past few years, with deal values in both the US and Europe significantly rising. This has also led to high returns. In fact, from 2009 through 2015, global financial services deals realized a pooled multiple on invested capital of 2.2x, higher than all sectors except healthcare. In addition, the technology sector has seen the highest multiples on invested capital.