Changes
→Other financial services
{{Finance sidebar}}
'''Financial services''' are the [[Service (economics)|economic services]] provided by the finance industry, which encompasses a broad range of [[business]]es that manage money, including [[credit union]]s, [[bank]]s, [[credit-card]] companies, [[insurance]] companies, [[accountancy]] companies, [[consumer finance|consumer-finance]] companies, [[brokerage firm|stock brokerages]], [[investment management|investment funds]], individual managers and some [[government-sponsored enterprise]]s.<ref>{{cite web|title=Financial Services: Getting the Goods|url=http://www.imf.org/external/pubs/ft/fandd/basics/finserv.htm|publisher=IMF|accessdate=8 September 2015|date=28 March 2012}}</ref> Financial services companies are present in all economically developed geographic locations and tend to cluster in local, national, regional and international [[financial center]]s such as [[Economy of London|London]], [[Economy of New York City|New York City]], and [[Economy of Tokyo|Tokyo]].
== History ==
{{See also|Global financial system#History of international financial architecture}}
The term "financial services" became more prevalent in the [[United States]] partly as a result of the [[Gramm-Leach-Bliley Act]] of the late 1990s, which enabled different types of companies operating in the U.S. financial services industry at that time to merge.<ref>{{cite web|url=http://thomas.loc.gov/cgi-bin/bdquery/z?d106:SN00900:@@@D&summ2=m&|title=Bill Summary & Status 106th Congress (1999 - 2000) S.900 CRS Summary - Thomas (Library of Congress)|accessdate=2011-02-08}}</ref>
Companies usually have two distinct approaches to this new type of business. One approach would be a bank which simply buys an insurance company or an [[investment bank]], keeps the original [[brand]]s of the acquired firm, and adds the [[Takeover|acquisition]] to its [[holding company]] simply to diversify its [[earnings]]. Outside the U.S. (e.g. [[Japan]]), non-financial services companies are permitted within the [[holding company]]. In this scenario, each company still looks independent, and has its own customers, etc. In the other style, a bank would simply create its own brokerage division or insurance division and attempt to sell those products to its own existing customers, with incentives for combining all things with one company.
==Banks==
{{Main|Bank}}
===Commercial banking services===
{{Main|Commercial bank}}
A commercial bank is what is commonly referred to as simply a bank. The term "[[Commerce|commercial]]" is used to distinguish it from an [[investment bank]], a type of financial services entity which instead of lending money directly to a business, helps businesses raise money from other firms in the form of [[Bond (finance)|bonds]] (debt) or [[stock]] (equity).
The primary operations of commercial banks include:
* Keeping money [[safe]] while also allowing withdrawals when needed
* Issuance of [[chequebook]]s so that bills can be paid and other kinds of payments can be delivered by the post
* Provide [[Unsecured loan|personal loan]]s, [[Loan|commercial loans]], and [[mortgage loan]]s (typically loans to purchase a home, property or business)
* Issuance of [[credit card]]s and processing of credit card [[Electronic funds transfer|transactions]] and billing
* Issuance of [[debit card]]s for use as a substitute for [[cheque]]s
* Allow financial transactions at branches or by using [[Automatic Teller Machine]]s (ATMs)
* Provide wire transfers of funds and [[Electronic fund transfer]]s between banks
* Facilitation of standing orders and direct [[debit]]s, so payments for bills can be made automatically
* Provide [[overdraft]] agreements for the temporary advancement of the bank's own money to meet monthly spending commitments of a customer in their current account.
* Provide internet banking system to facilitate the customers to view and operate their respective accounts through internet.
* Provide charge card advances of the bank's own money for customers wishing to settle credit advances monthly.
* Provide a check guaranteed by the bank itself and prepaid by the customer, such as a [[cashier's check]] or [[certified check]].
* [[Notary]] service for financial and other documents
* Accepting the deposits from customer and provide the credit facilities to them.
* Sell investment products like mutual funds Etc.
The United States is the largest location for commercial banking services.
===Investment banking services===
{{Main|Investment banking}}
*[[Capital markets]] services - [[underwrite|underwriting]] debt and [[Stock|equity]], assist company deals (advisory services, underwriting, [[mergers and acquisitions]] and advisory fees), and restructure debt into [[structured finance]] products.
*[[Brokerage]] services - facilitating the buying and selling of [[Security (finance)|financial securities]] between a buyer and a seller. In today's (2014) stock brokers, brokerages services are offered online to self trading investors throughout the world who have the option of trading with 'tied' [[online trading platform]]s offered by a banking institution or with [[online trading platform]]s sometimes offered in a group by so-called [[online trading portal]]s.
*[[Private banking]] - Private banks provide banking services exclusively to [[high-net-worth individual]]s. Many financial services firms require a person or family to have a certain minimum net worth to qualify for private banking service.<ref>{{cite web|url=http://www.investorwords.com/5946/private_banking.html|title=Private Banking definition|publisher=Investor Words.com|accessdate=2009-02-06}}</ref> Private banks often provide more personal services, such as [[wealth management]] and [[tax planning]], than normal retail banks.<ref>{{cite web|url=http://money.howstuffworks.com/personal-finance/banking/swiss-bank-account.htm|title=How Swiss Bank Accounts Work|publisher=How Stuff Works|accessdate=2009-02-06}}</ref>
New York City and London are the largest centers of investment banking services. NYC is dominated by U.S. domestic business, while in London [[international business]] and commerce make up a significant portion of investment banking activity.<ref name="Roberts20082">{{cite book|url=https://www.amazon.co.uk/City-Londons-Global-Financial-Economist/dp/1861978588/ref=la_B001H9RUQU_1_2?s=books&ie=UTF8&qid=1387163057&sr=1-2|title=The City: A Guide to London's Global Financial Centre|last=Roberts|first=Richard|publisher=Economist|year=2008|page=2}}</ref>
==Foreign exchange services==
Foreign exchange services are provided by many banks and specialist [[Foreign exchange company|foreign exchange brokers]] around the world. Foreign exchange services include:
*[[Bureau de change|Currency exchange]] - where clients can purchase and sell foreign currency banknotes.
*[[Wire transfer]] - where clients can send funds to international banks abroad.
*[[Remittance]] - where clients that are migrant workers send money back to their home country.
London handled 36.7% of [[World currency|global currency]] transactions {{As of|2009|alt=in 2009}} – an average daily turnover of [[United States dollar|US$]]1.85 trillion – with more US dollars traded in London than New York, and more [[Euros]] traded than in every other city in Europe combined.<ref name="citylondon">{{cite web|url=http://www.cityoflondon.gov.uk/Corporation/LGNL_Services/Business/Business_support_and_advice/Economic_information_and_analysis/Research+and+statistics+FAQ.htm|title=Research and statistics FAQ|publisher=The City of London|accessdate=23 February 2012|deadurl=yes|archiveurl=https://archive.is/20110926180238/http://www.cityoflondon.gov.uk/Corporation/LGNL_Services/Business/Business_support_and_advice/Economic_information_and_analysis/Research+and+statistics+FAQ.htm|archivedate=26 September 2011|df=dmy-all}}</ref><ref>{{cite web|url= http://www.bis.org/publ/rpfx05t.pdf|title=Triennial Central Bank Survey - Foreign exchange and derivatives market activity in 2004|publisher=Bank for International Settlements|date=March 2005|accessdate=2018-03-05}}</ref><ref>"[http://www.cityoflondon.gov.uk/Corporation/media_centre/keyfacts.htm Key facts] {{webarchive|url=https://archive.is/20120604105628/http://www.cityoflondon.gov.uk/Corporation/media_centre/keyfacts.htm |date=4 June 2012 }}", Corporation of London. Retrieved 19 June 2006.</ref><ref>European Central Bank (July 2017) [https://www.ecb.europa.eu/pub/pdf/other/ecb.euro-international-role-201707.pdf?5155295783d0b744ab5aa5a85d8674c1 "The international role of the euro"]. European Central Bank. p. 28.</ref><ref>Chatsworth Communications (April 6, 2016) [http://www.chatsworthcommunications.com/londons-leading-position-as-a-usd-2-2-trillion-hub-for-fx-trading-would-be-harmed-by-a-brexit-according-to-poll-of-currency-market-professionals/ "London's leading position as a USD 2.2 trillion hub for FX trading would be harmed by a Brexit, according to poll of currency market professionals"]. Chatsworth Communications.</ref>
== Investment services ==
*[[Investment management]] - the term usually given to describe companies which run [[collective investment fund]]s. Also refers to services provided by others, generally registered with the Securities and Exchange Commission as [[Registered Investment Advisors]]. Investment banking financial services focus on creating capital through client investments.
*[[Hedge fund|Hedge fund management]] - Hedge funds often employ the services of "[[prime brokerage]]" divisions at major investment banks to execute their trades.
*[[Custodian bank|Custody services]] - the safe-keeping and processing of the world's securities trades and servicing the associated portfolios. Assets under custody in the world are approximately US$100 trillion.<ref>{{cite web|url=http://www.cm1.prusec.com/rschrpts.nsf/$$rschidxw/4A2ACD93260C58E785256FA3005F8D0E/$FILE/PROCESSINGPRIMER25-0076.PDF|format=PDF|title=Prudential: Securities Processing Primer|website=cm1.prusec.com}}</ref>
New York City is the largest center of investment services, followed by London.<ref>{{Cite web|url=https://www.theinvestmentassociation.org/assets/files/research/2017/20170914-ams2017.pdf|title=Asset Management in the UK 2016-2017|last=|first=|date=September 2017|website=|publisher=The Investment Management Association|page=12|archive-url=|archive-date=|dead-url=|access-date=5 March 2018}}</ref>
==Insurance==
{{Main|Insurance}}
*Insurance brokerage - [[Insurance broker]]s shop for insurance (generally corporate property and casualty insurance) on behalf of customers. Recently a number of websites have been created to give consumers basic price comparisons for services such as insurance, causing controversy within the industry.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/7201345.stm|title= Price comparison sites face probe|date=2008-01-22|publisher=BBC News|accessdate=2009-02-06}}</ref>
*Insurance underwriting - Personal lines insurance [[underwriter]]s actually underwrite insurance for individuals, a service still offered primarily through agents, [[insurance broker]]s, and [[brokerage firm|stock broker]]s. Underwriters may also offer similar commercial lines of coverage for businesses. Activities include insurance and [[Annuity (financial contracts)|annuities]], [[life insurance]], retirement insurance, [[health insurance]], and [[property insurance]] and [[casualty insurance]].
*Finance & Insurance - a service still offered primarily at asset dealerships. The F&I manager encompasses the financing and insuring of the asset which is sold by the dealer. F&I is often called "the second gross" in dealerships who have adopted the model
*[[Reinsurance]] - Reinsurance is insurance sold to insurers themselves, to protect them from catastrophic losses.
The United States, followed by Japan and the United Kingdom are the largest insurance markets in the world.<ref>{{Cite web|url=https://www.abi.org.uk/globalassets/sitecore/files/documents/publications/public/2015/statistics/key-facts-2015.pdf|title=UK Insurance & Long Term Savings Key Facts 2015|last=|first=|date=September 2015|website=|publisher=Association of British Insurers|archive-url=|archive-date=|dead-url=|access-date=5 March 2018}}</ref>
==Other financial services==
*[[Bank card]]s - include both [[credit card]]s and [[debit card]]s. According to the Nilson Report, JP Morgan Chase is the largest issuer of bank cards.<ref>{{cite web|url=http://www.nilsonreport.com|title=The Nilson Report - News and Statistics for Card and Mobile Payment Executives|publisher=}}</ref>
*Credit card machine services and networks - Companies which provide credit card machine and payment networks call themselves "merchant card providers".
*Intermediation or advisory services - These services involve stock brokers (private client services) and [[discount broker]]s. Stock brokers assist investors in buying or selling shares. Primarily internet-based companies are often referred to as discount brokerages, although many now have branch offices to assist clients. These brokerages primarily target individual investors. Full service and private client firms primarily assist and execute trades for clients with large amounts of capital to invest, such as large companies, wealthy individuals, and investment management funds.
*Private equity - [[Private equity]] funds are typically closed-end funds, which usually take controlling equity stakes in businesses that are either private, or taken private once acquired. Private equity funds often use leveraged buyouts (LBOs) to acquire the firms in which they invest. The most successful private equity funds can generate returns significantly higher than provided by the equity markets.
*[[Venture capital]] is a type of private equity capital typically provided by professional, outside investors to new, high-growth-potential companies in the interest of taking the company to an IPO or trade sale of the business.
*Angel investment - An [[angel investor]] or angel (known as a business angel or informal investor in Europe), is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel groups or angel networks to share resources and pool their investment capital.
*{{anchor|Conglomerates}}[[Conglomerate (company)|Conglomerate]]s - A financial services company, such as a [[universal bank]], that is active in more than one sector of the financial services market e.g. life insurance, general insurance, health insurance, asset management, [[retail banking]], wholesale banking, investment banking, etc. A key rationale for the existence of such businesses is the existence of diversification benefits that are present when different types of businesses are aggregated. As a consequence, [[economic capital]] for a conglomerate is usually substantially less than [[economic capital]] is for the sum of its parts.
*Financial market utilities - Organisations that are part of the infrastructure of financial services, such as [[stock exchange]]s, [[Clearing house (finance)|clearing houses]], derivative and commodity [[Exchange (organized market)|exchanges]] and [[payment system]]s such as [[real-time gross settlement]] systems or [[interbank network]]s.
*[[Debt settlement|Debt resolution]] is a consumer service that assists individuals that have too much debt to pay off as requested, but do not want to file bankruptcy and wish to pay off their debts owed. This debt can be accrued in various ways including but not limited to personal loans, credit cards or in some cases merchant accounts.
==Financial exports==
{{Anchor|Financial exports}}<!-- [[Financial export]] redirects here -->
A financial export is a financial service provided by a domestic firm (regardless of ownership) to a foreign firm or individual. While financial services such as banking, insurance and investment management are often seen as a domestic service, an increasing proportion of financial services are now being handled abroad, in other [[financial centre]]s, for a variety of reasons. Some smaller financial centres, such as [[Bermuda]], [[Luxembourg]], and the [[Cayman Islands]], lack sufficient size for a domestic financial services sector and have developed a role providing services to non-residents as [[offshore financial centre]]s. The increasing competitiveness of financial services has meant that some countries, such as Japan, which were self-sufficient have increasingly imported financial services.
The leading financial exporter, in terms of exports less imports, is the [[United Kingdom]], which had $95 billion of financial exports in 2014.<ref name=TheCityUK2015>{{cite web|title=UK trade surplus in financial services highest ever|url=http://www.thecityuk.com/media/latest-news-from-thecityuk/thecityuk-uk-trade-surplus-in-financial-services-highest-ever/|publisher=TheCityUK|accessdate=5 June 2015|date=21 July 2015}}</ref> The UK's position is helped by both unique institutions (such as [[Lloyd's of London]] for insurance, the [[Baltic Exchange]] for shipping etc.)<ref>{{cite book|last1=Clark|first1=David|title=Urban world/global city|date=2003|publisher=Routledge|isbn=0415320976|pages=174–176|url=https://books.google.co.uk/books?id=J21sBa6n46gC&pg=PA174&lpg=PA174#v=onepage&q&f=false|postscript=none}}; {{cite book|last1=Shubik|first1=Martin|title=The theory of money and financial institutions|date=1999|publisher=MIT Press|isbn=0262693119|page=8|url=https://books.google.co.uk/books?id=m9BWUe9xveQC&pg=PA8&lpg=PA8#v=onepage&q&f=false}}</ref> and an environment that attracts foreign firms;<ref name=Roberts2008>{{cite book|last=Roberts|first=Richard|title=The City: A Guide to London's Global Financial Centre|year=2008|publisher=Economist|url=https://books.google.co.uk/books?id=J0vl6CltQjEC&lpg=PP1&dq=the%20city%20richard%20roberts&pg=PA2#v=onepage&q&f=false|pages=1–22}}</ref> many international corporations have global or regional headquarters in the [[London]] and are listed on the [[London Stock Exchange]], and many banks and other financial institutions operate there or in [[Edinburgh]].<ref name=TheCityUK2014>{{cite web|title=UK’s financial services trade surplus biggest in the world, dwarfing its nearest rivals|url=http://www.thecityuk.com/media/latest-news-from-thecityuk/uk-s-financial-services-trade-surplus-biggest-in-the-world-dwarfing-its-nearest-rivals/|publisher=TheCityUK|accessdate=5 June 2015|date=3 July 2014}}</ref><ref>{{cite web|title=Special report on services exports|url=http://www.ey.com/Publication/vwLUAssets/EY_ITEM_Club_special_report_on_services_exports_-_full_report/$FILE/EY%20ITEM%20Club%20special%20Report%20on%20Services%20Exports_FINAL.pdf|publisher=EY Item Club|accessdate=8 September 2015|date=June 2014}}</ref>
==See also==
<!-- Please respect alphabetical order -->
{{Wikipedia books|Finance}}
{{div col|colwidth=30em}}
* [[Alternative financial services]]
* [[Financial analyst]]
* [[Financial crime]]
* [[Financial data vendors]]
* [[Financial markets]]
* [[Financial technology]]
* [[Financialization]]
* [[Insider threat]]
* [[International Monetary Fund]]
* [[List of banks]]
* [[List of investment banks]]
* [[List of largest financial services companies by revenue]]
{{div col end}}
==References==
{{Reflist}}
== Further reading ==
*{{Cite book|last = Porteous | first = Bruce T. |author2=Pradip Tapadar | title = Economic Capital and Financial Risk Management for Financial Services Firms and Conglomerates| publisher = Palgrave Macmillan |date=December 2005 | isbn = 1-4039-3608-0 }}
==External links==
* [http://www.hks.harvard.edu/m-rcbg/CSRI/publications/report_19_EO%20Finance%20Final.pdf The role of the financial Services Sector in Expanding Economic Opportunity | A report by Christopher N. Sutton and Beth Jenkins | John F. Kennedy School of Government | Harvard University]
{{Industries}}
{{DEFAULTSORT:Financial Services}}
[[Category:Financial markets]]
[[Category:Financial services| ]]
'''Financial services''' are the [[Service (economics)|economic services]] provided by the finance industry, which encompasses a broad range of [[business]]es that manage money, including [[credit union]]s, [[bank]]s, [[credit-card]] companies, [[insurance]] companies, [[accountancy]] companies, [[consumer finance|consumer-finance]] companies, [[brokerage firm|stock brokerages]], [[investment management|investment funds]], individual managers and some [[government-sponsored enterprise]]s.<ref>{{cite web|title=Financial Services: Getting the Goods|url=http://www.imf.org/external/pubs/ft/fandd/basics/finserv.htm|publisher=IMF|accessdate=8 September 2015|date=28 March 2012}}</ref> Financial services companies are present in all economically developed geographic locations and tend to cluster in local, national, regional and international [[financial center]]s such as [[Economy of London|London]], [[Economy of New York City|New York City]], and [[Economy of Tokyo|Tokyo]].
== History ==
{{See also|Global financial system#History of international financial architecture}}
The term "financial services" became more prevalent in the [[United States]] partly as a result of the [[Gramm-Leach-Bliley Act]] of the late 1990s, which enabled different types of companies operating in the U.S. financial services industry at that time to merge.<ref>{{cite web|url=http://thomas.loc.gov/cgi-bin/bdquery/z?d106:SN00900:@@@D&summ2=m&|title=Bill Summary & Status 106th Congress (1999 - 2000) S.900 CRS Summary - Thomas (Library of Congress)|accessdate=2011-02-08}}</ref>
Companies usually have two distinct approaches to this new type of business. One approach would be a bank which simply buys an insurance company or an [[investment bank]], keeps the original [[brand]]s of the acquired firm, and adds the [[Takeover|acquisition]] to its [[holding company]] simply to diversify its [[earnings]]. Outside the U.S. (e.g. [[Japan]]), non-financial services companies are permitted within the [[holding company]]. In this scenario, each company still looks independent, and has its own customers, etc. In the other style, a bank would simply create its own brokerage division or insurance division and attempt to sell those products to its own existing customers, with incentives for combining all things with one company.
==Banks==
{{Main|Bank}}
===Commercial banking services===
{{Main|Commercial bank}}
A commercial bank is what is commonly referred to as simply a bank. The term "[[Commerce|commercial]]" is used to distinguish it from an [[investment bank]], a type of financial services entity which instead of lending money directly to a business, helps businesses raise money from other firms in the form of [[Bond (finance)|bonds]] (debt) or [[stock]] (equity).
The primary operations of commercial banks include:
* Keeping money [[safe]] while also allowing withdrawals when needed
* Issuance of [[chequebook]]s so that bills can be paid and other kinds of payments can be delivered by the post
* Provide [[Unsecured loan|personal loan]]s, [[Loan|commercial loans]], and [[mortgage loan]]s (typically loans to purchase a home, property or business)
* Issuance of [[credit card]]s and processing of credit card [[Electronic funds transfer|transactions]] and billing
* Issuance of [[debit card]]s for use as a substitute for [[cheque]]s
* Allow financial transactions at branches or by using [[Automatic Teller Machine]]s (ATMs)
* Provide wire transfers of funds and [[Electronic fund transfer]]s between banks
* Facilitation of standing orders and direct [[debit]]s, so payments for bills can be made automatically
* Provide [[overdraft]] agreements for the temporary advancement of the bank's own money to meet monthly spending commitments of a customer in their current account.
* Provide internet banking system to facilitate the customers to view and operate their respective accounts through internet.
* Provide charge card advances of the bank's own money for customers wishing to settle credit advances monthly.
* Provide a check guaranteed by the bank itself and prepaid by the customer, such as a [[cashier's check]] or [[certified check]].
* [[Notary]] service for financial and other documents
* Accepting the deposits from customer and provide the credit facilities to them.
* Sell investment products like mutual funds Etc.
The United States is the largest location for commercial banking services.
===Investment banking services===
{{Main|Investment banking}}
*[[Capital markets]] services - [[underwrite|underwriting]] debt and [[Stock|equity]], assist company deals (advisory services, underwriting, [[mergers and acquisitions]] and advisory fees), and restructure debt into [[structured finance]] products.
*[[Brokerage]] services - facilitating the buying and selling of [[Security (finance)|financial securities]] between a buyer and a seller. In today's (2014) stock brokers, brokerages services are offered online to self trading investors throughout the world who have the option of trading with 'tied' [[online trading platform]]s offered by a banking institution or with [[online trading platform]]s sometimes offered in a group by so-called [[online trading portal]]s.
*[[Private banking]] - Private banks provide banking services exclusively to [[high-net-worth individual]]s. Many financial services firms require a person or family to have a certain minimum net worth to qualify for private banking service.<ref>{{cite web|url=http://www.investorwords.com/5946/private_banking.html|title=Private Banking definition|publisher=Investor Words.com|accessdate=2009-02-06}}</ref> Private banks often provide more personal services, such as [[wealth management]] and [[tax planning]], than normal retail banks.<ref>{{cite web|url=http://money.howstuffworks.com/personal-finance/banking/swiss-bank-account.htm|title=How Swiss Bank Accounts Work|publisher=How Stuff Works|accessdate=2009-02-06}}</ref>
New York City and London are the largest centers of investment banking services. NYC is dominated by U.S. domestic business, while in London [[international business]] and commerce make up a significant portion of investment banking activity.<ref name="Roberts20082">{{cite book|url=https://www.amazon.co.uk/City-Londons-Global-Financial-Economist/dp/1861978588/ref=la_B001H9RUQU_1_2?s=books&ie=UTF8&qid=1387163057&sr=1-2|title=The City: A Guide to London's Global Financial Centre|last=Roberts|first=Richard|publisher=Economist|year=2008|page=2}}</ref>
==Foreign exchange services==
Foreign exchange services are provided by many banks and specialist [[Foreign exchange company|foreign exchange brokers]] around the world. Foreign exchange services include:
*[[Bureau de change|Currency exchange]] - where clients can purchase and sell foreign currency banknotes.
*[[Wire transfer]] - where clients can send funds to international banks abroad.
*[[Remittance]] - where clients that are migrant workers send money back to their home country.
London handled 36.7% of [[World currency|global currency]] transactions {{As of|2009|alt=in 2009}} – an average daily turnover of [[United States dollar|US$]]1.85 trillion – with more US dollars traded in London than New York, and more [[Euros]] traded than in every other city in Europe combined.<ref name="citylondon">{{cite web|url=http://www.cityoflondon.gov.uk/Corporation/LGNL_Services/Business/Business_support_and_advice/Economic_information_and_analysis/Research+and+statistics+FAQ.htm|title=Research and statistics FAQ|publisher=The City of London|accessdate=23 February 2012|deadurl=yes|archiveurl=https://archive.is/20110926180238/http://www.cityoflondon.gov.uk/Corporation/LGNL_Services/Business/Business_support_and_advice/Economic_information_and_analysis/Research+and+statistics+FAQ.htm|archivedate=26 September 2011|df=dmy-all}}</ref><ref>{{cite web|url= http://www.bis.org/publ/rpfx05t.pdf|title=Triennial Central Bank Survey - Foreign exchange and derivatives market activity in 2004|publisher=Bank for International Settlements|date=March 2005|accessdate=2018-03-05}}</ref><ref>"[http://www.cityoflondon.gov.uk/Corporation/media_centre/keyfacts.htm Key facts] {{webarchive|url=https://archive.is/20120604105628/http://www.cityoflondon.gov.uk/Corporation/media_centre/keyfacts.htm |date=4 June 2012 }}", Corporation of London. Retrieved 19 June 2006.</ref><ref>European Central Bank (July 2017) [https://www.ecb.europa.eu/pub/pdf/other/ecb.euro-international-role-201707.pdf?5155295783d0b744ab5aa5a85d8674c1 "The international role of the euro"]. European Central Bank. p. 28.</ref><ref>Chatsworth Communications (April 6, 2016) [http://www.chatsworthcommunications.com/londons-leading-position-as-a-usd-2-2-trillion-hub-for-fx-trading-would-be-harmed-by-a-brexit-according-to-poll-of-currency-market-professionals/ "London's leading position as a USD 2.2 trillion hub for FX trading would be harmed by a Brexit, according to poll of currency market professionals"]. Chatsworth Communications.</ref>
== Investment services ==
*[[Investment management]] - the term usually given to describe companies which run [[collective investment fund]]s. Also refers to services provided by others, generally registered with the Securities and Exchange Commission as [[Registered Investment Advisors]]. Investment banking financial services focus on creating capital through client investments.
*[[Hedge fund|Hedge fund management]] - Hedge funds often employ the services of "[[prime brokerage]]" divisions at major investment banks to execute their trades.
*[[Custodian bank|Custody services]] - the safe-keeping and processing of the world's securities trades and servicing the associated portfolios. Assets under custody in the world are approximately US$100 trillion.<ref>{{cite web|url=http://www.cm1.prusec.com/rschrpts.nsf/$$rschidxw/4A2ACD93260C58E785256FA3005F8D0E/$FILE/PROCESSINGPRIMER25-0076.PDF|format=PDF|title=Prudential: Securities Processing Primer|website=cm1.prusec.com}}</ref>
New York City is the largest center of investment services, followed by London.<ref>{{Cite web|url=https://www.theinvestmentassociation.org/assets/files/research/2017/20170914-ams2017.pdf|title=Asset Management in the UK 2016-2017|last=|first=|date=September 2017|website=|publisher=The Investment Management Association|page=12|archive-url=|archive-date=|dead-url=|access-date=5 March 2018}}</ref>
==Insurance==
{{Main|Insurance}}
*Insurance brokerage - [[Insurance broker]]s shop for insurance (generally corporate property and casualty insurance) on behalf of customers. Recently a number of websites have been created to give consumers basic price comparisons for services such as insurance, causing controversy within the industry.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/7201345.stm|title= Price comparison sites face probe|date=2008-01-22|publisher=BBC News|accessdate=2009-02-06}}</ref>
*Insurance underwriting - Personal lines insurance [[underwriter]]s actually underwrite insurance for individuals, a service still offered primarily through agents, [[insurance broker]]s, and [[brokerage firm|stock broker]]s. Underwriters may also offer similar commercial lines of coverage for businesses. Activities include insurance and [[Annuity (financial contracts)|annuities]], [[life insurance]], retirement insurance, [[health insurance]], and [[property insurance]] and [[casualty insurance]].
*Finance & Insurance - a service still offered primarily at asset dealerships. The F&I manager encompasses the financing and insuring of the asset which is sold by the dealer. F&I is often called "the second gross" in dealerships who have adopted the model
*[[Reinsurance]] - Reinsurance is insurance sold to insurers themselves, to protect them from catastrophic losses.
The United States, followed by Japan and the United Kingdom are the largest insurance markets in the world.<ref>{{Cite web|url=https://www.abi.org.uk/globalassets/sitecore/files/documents/publications/public/2015/statistics/key-facts-2015.pdf|title=UK Insurance & Long Term Savings Key Facts 2015|last=|first=|date=September 2015|website=|publisher=Association of British Insurers|archive-url=|archive-date=|dead-url=|access-date=5 March 2018}}</ref>
==Other financial services==
*[[Bank card]]s - include both [[credit card]]s and [[debit card]]s. According to the Nilson Report, JP Morgan Chase is the largest issuer of bank cards.<ref>{{cite web|url=http://www.nilsonreport.com|title=The Nilson Report - News and Statistics for Card and Mobile Payment Executives|publisher=}}</ref>
*Credit card machine services and networks - Companies which provide credit card machine and payment networks call themselves "merchant card providers".
*Intermediation or advisory services - These services involve stock brokers (private client services) and [[discount broker]]s. Stock brokers assist investors in buying or selling shares. Primarily internet-based companies are often referred to as discount brokerages, although many now have branch offices to assist clients. These brokerages primarily target individual investors. Full service and private client firms primarily assist and execute trades for clients with large amounts of capital to invest, such as large companies, wealthy individuals, and investment management funds.
*Private equity - [[Private equity]] funds are typically closed-end funds, which usually take controlling equity stakes in businesses that are either private, or taken private once acquired. Private equity funds often use leveraged buyouts (LBOs) to acquire the firms in which they invest. The most successful private equity funds can generate returns significantly higher than provided by the equity markets.
*[[Venture capital]] is a type of private equity capital typically provided by professional, outside investors to new, high-growth-potential companies in the interest of taking the company to an IPO or trade sale of the business.
*Angel investment - An [[angel investor]] or angel (known as a business angel or informal investor in Europe), is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel groups or angel networks to share resources and pool their investment capital.
*{{anchor|Conglomerates}}[[Conglomerate (company)|Conglomerate]]s - A financial services company, such as a [[universal bank]], that is active in more than one sector of the financial services market e.g. life insurance, general insurance, health insurance, asset management, [[retail banking]], wholesale banking, investment banking, etc. A key rationale for the existence of such businesses is the existence of diversification benefits that are present when different types of businesses are aggregated. As a consequence, [[economic capital]] for a conglomerate is usually substantially less than [[economic capital]] is for the sum of its parts.
*Financial market utilities - Organisations that are part of the infrastructure of financial services, such as [[stock exchange]]s, [[Clearing house (finance)|clearing houses]], derivative and commodity [[Exchange (organized market)|exchanges]] and [[payment system]]s such as [[real-time gross settlement]] systems or [[interbank network]]s.
*[[Debt settlement|Debt resolution]] is a consumer service that assists individuals that have too much debt to pay off as requested, but do not want to file bankruptcy and wish to pay off their debts owed. This debt can be accrued in various ways including but not limited to personal loans, credit cards or in some cases merchant accounts.
==Financial exports==
{{Anchor|Financial exports}}<!-- [[Financial export]] redirects here -->
A financial export is a financial service provided by a domestic firm (regardless of ownership) to a foreign firm or individual. While financial services such as banking, insurance and investment management are often seen as a domestic service, an increasing proportion of financial services are now being handled abroad, in other [[financial centre]]s, for a variety of reasons. Some smaller financial centres, such as [[Bermuda]], [[Luxembourg]], and the [[Cayman Islands]], lack sufficient size for a domestic financial services sector and have developed a role providing services to non-residents as [[offshore financial centre]]s. The increasing competitiveness of financial services has meant that some countries, such as Japan, which were self-sufficient have increasingly imported financial services.
The leading financial exporter, in terms of exports less imports, is the [[United Kingdom]], which had $95 billion of financial exports in 2014.<ref name=TheCityUK2015>{{cite web|title=UK trade surplus in financial services highest ever|url=http://www.thecityuk.com/media/latest-news-from-thecityuk/thecityuk-uk-trade-surplus-in-financial-services-highest-ever/|publisher=TheCityUK|accessdate=5 June 2015|date=21 July 2015}}</ref> The UK's position is helped by both unique institutions (such as [[Lloyd's of London]] for insurance, the [[Baltic Exchange]] for shipping etc.)<ref>{{cite book|last1=Clark|first1=David|title=Urban world/global city|date=2003|publisher=Routledge|isbn=0415320976|pages=174–176|url=https://books.google.co.uk/books?id=J21sBa6n46gC&pg=PA174&lpg=PA174#v=onepage&q&f=false|postscript=none}}; {{cite book|last1=Shubik|first1=Martin|title=The theory of money and financial institutions|date=1999|publisher=MIT Press|isbn=0262693119|page=8|url=https://books.google.co.uk/books?id=m9BWUe9xveQC&pg=PA8&lpg=PA8#v=onepage&q&f=false}}</ref> and an environment that attracts foreign firms;<ref name=Roberts2008>{{cite book|last=Roberts|first=Richard|title=The City: A Guide to London's Global Financial Centre|year=2008|publisher=Economist|url=https://books.google.co.uk/books?id=J0vl6CltQjEC&lpg=PP1&dq=the%20city%20richard%20roberts&pg=PA2#v=onepage&q&f=false|pages=1–22}}</ref> many international corporations have global or regional headquarters in the [[London]] and are listed on the [[London Stock Exchange]], and many banks and other financial institutions operate there or in [[Edinburgh]].<ref name=TheCityUK2014>{{cite web|title=UK’s financial services trade surplus biggest in the world, dwarfing its nearest rivals|url=http://www.thecityuk.com/media/latest-news-from-thecityuk/uk-s-financial-services-trade-surplus-biggest-in-the-world-dwarfing-its-nearest-rivals/|publisher=TheCityUK|accessdate=5 June 2015|date=3 July 2014}}</ref><ref>{{cite web|title=Special report on services exports|url=http://www.ey.com/Publication/vwLUAssets/EY_ITEM_Club_special_report_on_services_exports_-_full_report/$FILE/EY%20ITEM%20Club%20special%20Report%20on%20Services%20Exports_FINAL.pdf|publisher=EY Item Club|accessdate=8 September 2015|date=June 2014}}</ref>
==See also==
<!-- Please respect alphabetical order -->
{{Wikipedia books|Finance}}
{{div col|colwidth=30em}}
* [[Alternative financial services]]
* [[Financial analyst]]
* [[Financial crime]]
* [[Financial data vendors]]
* [[Financial markets]]
* [[Financial technology]]
* [[Financialization]]
* [[Insider threat]]
* [[International Monetary Fund]]
* [[List of banks]]
* [[List of investment banks]]
* [[List of largest financial services companies by revenue]]
{{div col end}}
==References==
{{Reflist}}
== Further reading ==
*{{Cite book|last = Porteous | first = Bruce T. |author2=Pradip Tapadar | title = Economic Capital and Financial Risk Management for Financial Services Firms and Conglomerates| publisher = Palgrave Macmillan |date=December 2005 | isbn = 1-4039-3608-0 }}
==External links==
* [http://www.hks.harvard.edu/m-rcbg/CSRI/publications/report_19_EO%20Finance%20Final.pdf The role of the financial Services Sector in Expanding Economic Opportunity | A report by Christopher N. Sutton and Beth Jenkins | John F. Kennedy School of Government | Harvard University]
{{Industries}}
{{DEFAULTSORT:Financial Services}}
[[Category:Financial markets]]
[[Category:Financial services| ]]
