What Does a Financial Services Company Do?

The premiums collected by an insurance company are
statistically not likely to have to be completely repaid.
After a while, an insurance company accumulates more
money from premiums than it has had to pay out in
claims, and this extra cash is referred to as “float.” It is
not uncommon for an insurance company to invest its
float in order to earn a return, and thus, in a way, insure
themselves.
Banks are another
very common type
of financial services
company. Banks
provide many
services and
products that all of
us have a degree of
familiarity with,
such as charge
accounts, checking,
electronic funds
transfers, and loans.
Many other services
are included within
the sphere of traditional or “commercial” banking.
Investment banks may provide many of these same
services, but also manage the assets of their clients in
large investment funds.