34 Examples of the Financial Sector

John Spacey, April 25, 2021

The financial sector includes any firm, government enterprise or nonprofit that facilities commercial transactions or the investment of capital. This is a critical element of the economy that is required for all other economic activity. For example, payment services are required for commercial transactions and investment services are required to put capital to work to create value. The following are common examples of the financial sector.

Clearinghouses	Commercial Banks
Credit Card Companies	Credit Unions
Currency Exchange Services	Custodian Banks
Family Offices	Finance Companies
Financial Cooperatives	Financial Markets
Fintech	Hedge Funds
Holding Companies	Insurance Brokers
Insurance Companies	Insurance Underwriters
Investment Banks	Investment Funds
Investment Management	Investment Trusts
Mortgage Companies	Mutual Funds
Payment Processors	Pension Funds
Private Banking	Private Equity
Rating & Credit Agencies	Real Estate Companies
Reinsurance	Retail Banks
State Banks	Stockbrokers
Venture Capital	Wholesale Banking

Clearinghouses help to clear financial transactions such as stock trades and act as a middleman between buyer and seller.

Commercial bank is a broad term for banks that provide bank accounts and other products such as loans.

Custodian banks hold and administer securities for their owners. This allows securities to be traded without the complexity of taking possession and managing them.

Family offices manage the wealth of a family.

Fintech refers to firms that challenge the status quo of the banking industry in some way with technology.

Investment banks provide banking to large entities such as governments, businesses and wealthy families.

Reinsurance is an agreement that allows insurance companies to transfer risk to third parties.

Retail banks are commercial banks that serve individuals and small business.

State banks are commercial banks that are owned by a nation or region.

Wholesale banks provide services to other banks and financial companies. For example, a bank that lends other banks money or underwrites their insurance products.