Types of Financial Services You Should Be Aware Of
Whether you’re an investor, an owner, or just a consumer, there are certain types of financial services that you should be aware of. These include credit cards, insurance, and even credit unions.
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Regulatory bodies
Regulatory bodies for financial services play an important role in protecting consumers. These bodies are charged with ensuring that consumers are protected from fraud and other financial services related crimes. They also produce reports and publish financial sector statistics to keep consumers informed.
In the United States, there are four bodies that are responsible for regulating the financial services industry. These include the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission (SEC), the Division of Investment Management (DIM) and the Office of the Comptroller of the Currency (OCC). The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA) and the Office of the Comptroller (OCC) all supervise banks, credit unions, securities firms, investment companies and brokerage firms.
The SEC is responsible for regulating stock exchanges and other financial institutions and is also the main regulator of credit rating agencies. The SEC also brings legal actions against individuals or firms that violate securities law. These may be civil, criminal or regulatory.
Asset management
Using asset management services to increase the value of investments is a very important aspect of the financial industry. Aside from increasing total wealth over time, asset management is also important in mitigating risk.
Asset managers can be either independent firms or subsidiaries of banks and insurance companies. These firms can work on behalf of clients to invest their money or to purchase and sell assets. They also perform statistical analyses, interview people, and make investment decisions. They may invest in stocks, bonds, commodities, and alternative investments.
Asset management companies are in great demand. They streamline clients’ financial resources and offer growth opportunities. They have a high level of responsibility. They may also work for financial institutions, family offices, and nonprofit organizations.
Asset management is a process that ensures that firms are prepared for risk. Asset managers make investments in the best interests of their clients. They analyze market trends, evaluate the efficiency of each asset, and monitor risk in the asset portfolio.
Insurance
Whether you’re an insured or not, insurance is a vital component of the financial services industry. Whether it’s protecting your family or securing your property, insurance will help keep you out of trouble. It is a contract between you and your insurer, which will pay you a sum of money should you ever get in trouble.
There’s a whole slew of insurance products ranging from health and life to casualty and property. If you are in the market for an insurance policy, you can shop around for the best deal. It’s also possible for you to work with an insurance agent, who will shop around on your behalf. For instance, you can use a broker to help you find a policy with a low premium, while still protecting you from scams.
Credit card networks
Using credit cards in your daily life can be a great way to make purchases. Credit card networks are companies that help make credit card transactions easier. They create a digital infrastructure that facilitates payments between merchants and credit card issuers. These companies also help monitor fraudulent transactions.
Credit card networks have partnerships with many different industries. They also provide cardholders with benefits. These networks may offer travel perks or purchase protections. In addition, they set rules and regulations for cards within their network.
The most common card networks are Visa and Mastercard. These networks work with issuers to create credit cards. Most merchants accept these cards. However, there are some stores that will not accept cards from certain networks.
Credit card networks are also responsible for tracking credit card balances and transactions. The Federal Reserve tracks outstanding credit card balances.
Credit unions
Unlike banks, credit unions are not-for-profit institutions and are controlled by their members. Their primary mission is to serve their members’ financial needs. They offer a variety of products and services. They are often more affordable than traditional banks, and they have lower fees on basic transactions.
Credit unions are usually based in a specific community or region. They also have different eligibility requirements. Depending on the credit union, you may need to be 18 years old or belong to a specific group. Other eligibility criteria may include your employment or affiliation with a certain company.
One of the benefits of credit unions is that they offer more competitive interest rates. Money market rates for credit unions are typically higher than those for banks. Some credit unions also offer special bonuses for savings accounts.
