What are the different kinds of financial services? Essentially, these are the economic services provided by the finance industry. This industry includes a wide variety of businesses, such as banks, credit-card companies, and credit unions. In addition to these main types, there are also other types of financial services, such as Investment banking, Insurance underwriting, and Tax filing. Listed below are some of these types of services. Read on to discover more.
Investment banking
There are two major parts of investment banking. The buy side and the sell side. The buy side handles transactions between private companies and other financial institutions and helps the clients maximize their returns. The sell side handles the sale of newly-issued shares, bonds, and other securities. The sell side also performs market making. This involves holding shares in a portfolio until they are sold to a customer. The middle office, meanwhile, specializes in risk management, compliance, and other activities.
Insurance underwriting
Insurance underwriting plays a critical role in a number of financial situations. Underwriters are responsible for determining if a specific financial situation aligns with the company’s policies. Insurance underwriting involves several complexities that you should be aware of. Here are some tips to help you understand it better. Using the process to your advantage can help you avoid making mistakes that can cost you money in the long run. Listed below are some common mistakes to avoid:
Tax filing
Many people consider tax filing to be a financial service, but are they really? In 2017, American taxpayers spent over half a billion dollars on such products from paid tax return preparers and banks. The GAO investigated tax-time financial products and described their characteristics and use by Americans. It also investigated the disclosure practices for these products, and examined how much each service costs the consumer. Below are the main findings of this study.
Currency exchange
If you have ever traveled abroad, you may have heard of currency exchange. Perhaps you tried to figure out how much a hotel bill will cost in your own currency, or perhaps you wanted to buy an item that was cheaper in another country. Either way, you’ve probably seen boards showing the foreign exchange rates, including the “bid,” “ask,” and so on. If you were to try to do the same transaction in your own currency, you’d end up paying more than what you’d have to pay through the adjusted exchange rates.
Credit card machines
The cost of a credit card machine can be as low as a few hundred dollars, but the type you choose will depend on the features you need. Most credit card machines cost less than $100 while more expensive models can cost several hundred. These machines have a range of monthly fees as well as setup, gateway, and compliance fees. Depending on your business’s sales volume, you can negotiate lower rates with your credit card processing vendor.
Personal finance management
Personal finance is a broad area that encompasses many different career paths. If you are passionate about personal finance, you may want to consider a career in the field. Career options in this field can range from investment banking to corporate development. You can explore these options by browsing CFI’s interactive Career Map. Other options include corporate jobs in investment banking and private equity. These positions require a diverse set of skills, as do many of the other opportunities available.