Financial Institution is an institution which offers various financial services. Financial Institution is one of the major pillars of the society.
Financial Institution was created to provide financial services to the people. All the countries in the universe have their own financial institutions. Financial services include various types of offerings. Services that all are related to the money.
Purpose of Financial Institution
Financial Institution was created to provide loan services to the borrower. Financial Institution industry is growing its services around the world. Financial institution of the respective countries support the economic growth.
Financial Institutions have list of features which introduce them and their importance. Features are the qualities that an individual carries within them. Financial Institution provides lots of services from banking services to insurance services.
Access to investment in product is not a common feature of Financial Institution.
Access to investment in product is not a common feature of a financial institution. Financial Institution do not provide loan or financial services for product investment.
Access to investment is product is a personal choice. Loan or financial helps for such act is not processed by any Financial Institute. They are bound not to do so.
Financial institution themselves uses our money for investment purpose in various product investment. Financial Institution was created for the mutual benefits. It do the needful for the borrowers as well as for the institution.
What do you mean by Access to investment in products?
Access to investment in products means investment in stocks. Financial Institution do provide loan and investment facilities for other useful purpose. But they do not provide financial benefits or services to the people for investing it in the stocks.
Investment in the share market is a personnel choice. No financial help is provided by the banks or any other investment companies.
Features of Financial Institution
- Financial Institutions in an institution that allows financial transactions. Transfer of the amount from one account to another.
- Financial Institution provides various financial services to the people.
- They offer money deposit facilities to the holders.
- Financial advisory department provides financial advices.
- Paper checks is provided. Paper check is a type of payment in which payee withdraws money through check. Amount is withdrawn from the checking account.
- Access to ATM is another listed feature of Financial Institution. They provide this service to all the customers who apply for it.
- Passbook printing and direct deposit options are the features of Financial Institution. It characterized the financial institution.
Types of Financial Institution
Central Banks (Federal Reserve Bank)
- Responsible to manage all other banks.
- Responsible for conducting monetary policies.
- Central Bank do the supervision of Financial Institutions.
Retail and Commercial Banks
- Offers advice facilities to individual and businesses both.
- Retail Banks offer products services to the borrowers.
- Commercial Banks are responsible to provide financial helps to the businesses.
Savings and Loan
- S&L Association provides personal loans and home mortgages services.
- Major aim is to provide or lend residential mortgages.
- It helps in buying and selling of securities.
- Brokerage firms place trades of Stocks, Mutual funds, ETFs, etc.
- Middle Man who connects two parties for a financial exchange.
- It is a non- profit financial organization which does not depend on financial factors.
- It is not bound to any bank or an organization.
- Credit Union is a union in which banking services are provided by its own members.
- Investment Banks provide Financial Services to the business.
- It supports start-ups.
- Investment bank does the investment for an exchange of high rate of interest on it.
- They provide financial support to the victims.
- Insurance Companies is responsible to protect against financial losses.
- They sell insurance to the holders.
- Those who funds mortgage loans are known as Mortgage Companies.
- They provide financial support to the borrowers. Support is given on the basis of terms and conditions accepted.
- They seek funds from financial institution.
Services offered by Financial Institution
Financial institution is an organization that provide financial security to the holders.
Services that are related to the bank accounts.
Services from opening a bank account to deposit of the money.
Service of generating an ATM Card to check clearance and more.
- Financial Institutions have a consultancy department.
- They provides professional advices to the holders as per the situation.
- Financial advices about the investments, holding and loans.
- Financial Institutions provide Mutual Funds services to the holders.
- Services like SIP installments, Buying and selling of shares and more.
- Financial corporations offer insurance plans to the holders.
- Insurance helps to reduce the risk of loss up to major extent.
- Insurance is a type of financial support provided by the banks for any loss.
- Financial Institutions provide wealth management services.
- Wealth management includes management of the debt equity.
- It manages real estate, insurance products and more.
- Financial Institutions helps to provide taxation information.
- Detailing related to the tax distribution.
- Professional advisors help in tax savings.
Advantages of Financial Institution
- Financial Institution provides financial help to the holders.
- Financial Security is the major benefit.
- It provides Professional advisory panel.
- They provide Banking services like deposit money, check clearance, education loan and more.
- Financial Institutions was established to provide Insurance facilities to the holders.
- Helps in Tax management and capital restricting.
Access to investment in products means investment in stocks. It is not consider as a feature of financial institutions. Financial Institutions is an institution which performs all the finance related functioning. Financial Institutions have selected features like money deposit and withdrawal. Access to ATM and passbook maintenance and more.
Financial Institution is an institution which offers various financial services. Financial Institution is one of the major pillars of the society. Financial Institution created to provide financial services to the people.
Investment means putting your money on assets to earn some profit on it.
Access to Investment in products is the right answer. It not considered as a common feature of financial institution.
Banking services means the services which offered by Banks. It includes all the facilities that are related to the bank accounts. From opening a bank account to deposit of the money. ATM accessibility to check clearance and more.
FRB stands for Federal Reserve Bank and RBI stands for Reserve Bank of India.