The Financial Services Sector comprises thousands of commercial providers, depository institutions, brokerage firms, investors, insurance companies, and the financial service providers of the key financial utilities and support services which support these functions. There are two main components of Acquiry Financial Services – Investment and Financial Distribution. Financial Distribution involves the transportation of payments from one financial entity to another on behalf of a client. Investment is the process of purchasing assets or earning profits from the ownership of financial assets.
Financial services firms provide a variety of financial services in many sectors of activities. They include investment banking, corporate finance, merchant banking, mortgage banking, thrift management, global investment banking, and investment management. Many firms are categorized under various heads such as Public Funding, Private Placement, Venture Capital, and Commercial Lending. Financial services firms offer various types of investment options such as debt funds, venture capital, senior unsecured loans, bridge equity, reverse mortgage, and commercial mortgage.
Asset Management Financial services firms engage in the process of asset management. They help organizations such as corporations, mutual funds, government, hospitals, and other large organizations in realizing their growth goals through the strategies they implement. They help in the efficient management of these organizations’ assets. Asset management helps in preventing and controlling chaos in the organization by maintaining an optimal level of financial activity. Financial services firms help banks by providing support for their cash management activities and help them achieve cost effectiveness. Asset management companies can also be hired to conduct a risk analysis of large organizations and assist them in taking actions which are necessary for their survival.
Commercial Banking refers to the activities related to dealing with the financial market. Financial services companies provide commercial banking services for the benefit of customers. Some of these companies deal exclusively in brokering commercial loans, making commercial depositary receipt, creating corporate bank accounts, accepting deposits, granting loans, collecting rents, and conducting financial market activities such as buying and selling of securities, creating and closing accounts. A number of commercial banking companies also undertake other activities like international banking, mortgage banking, cross market refinancing, corporate cash management, and foreign exchange trading.
Insurance Financial services sector includes insurance related activities. Insurance companies provide insurance related solutions to customers. Some of the major insurance companies are insurer, investment company, life, health, trucking, and risk companies. Insurance helps in replacing the loss of income in case of accidents and other catastrophic events. In fact, in United States, the entire commerce is actually driven by insurance. Almost all states have some sort of financial assistance for victims of natural disasters such as fires and earthquakes.
Offshore Financial Services sector includes activities like foreign exchange trading, offshore merchant banking, and offshore treasury services. These companies offer professional advisory and financial advisory services to various customers. Financial services companies also provide asset management services, cash management services, portfolio management services, estate planning and inheritance planning, public company equities and corporate finance. Offshore treasury services include financial accountants, corporate tax experts, treasury department staff, bankruptcy lawyers, international banking and treasury officers.