Financial services are basically deal with merchant banks, credit card companies, consumer finance companies, stock brokerages or with the management of money. In the term of earning, financial services are the largest industry in the world that represents 20 percent of the market capitalization.
Gramm-Leach-Blilry Act enabled different types of companies in the US financial services industry to merge. Now a days, in US every company describes themselves as a financial services institution such as, Bank of America offers full-features brokerage products, while E*trade has expanded into offering bank accounts and loans.
Two different types of appraoches which companies usually prefer. In the first approach, bank buys an insurance company or an investment bank, adds the acquisition to its holding company to diversify its earnings and also keeps the original brands of the aquired firm. This type is essential for the Citigroup as well as JP Morgan Chase.
On the other hand, a bank attempts to sell the products to its existing customers, with incentives for combining all things with one company by creating its own brokerage division or insurance division.
When ever needed allow withdrawls and keeps money safe.
It provides the provision of loans and moratgage loans that are needed to purchase a home, and property as well as business.
The use of Automatic teller Machines (ATM) allows financial transactions at branches.
To meet monthly spending commitments of customers in their current account, provide overdraft agreements for the temporary advancement of the Bank's own money.
To settle credit advances monthly, provide Charge cards advances of the Bank's own Monet for customers wishing.
For making bills and payments automatically, they provide the facility of standing orders and direct debits.
For the financial services, custody services and securities processing, is a kind of 'bank-office administration'.
State Street Corporation: It provides products and services for portfolios of investment assets and also focuses on its services on institutional investors and investment management.
The bank of New York: It was a global financial services company and now it continues with the new name 'The bank of new york Mellon Corporation'. It operated four primary business areas such as:
Companies with a branch presence are known as Private client services or full services brokerages whereas stock broker's assits people in investing, online companies called discount brokerages.
It is a financial services firm that can be active in more than one sector at a time of a financial service market such as asset management, retail banking, general health insurance etc.
In the term of equity market cap and earnings, the financial services industry constitutes the largest group of companies in the world.
Custody services and security services are basically used for financial services which are called a kind of 'back-office administration'. The amount of assets under custody was estimated around $65 trillion at the end of 2004 in world.
When a term bank is quoted it generally refers to as a commercial bank. The other type of banking sectoe generally is known as Investment banking. An investment bank in its basic nature like other form of bank does not lend money to individual or business group.instead it raises money by getting the money invested in the form of stocks or bonds.varied banks exists across the globe.
Some major banks are
Private banking is another term for a financial service company that targets at providing large margin loans to reputed individuals or business houses
major private banking names are