The financial services industry is probably the first thing that most people think of when they hear the phrase. Another possibility is Wall Street. This business isn’t just about buying stocks and helping people with their investments, though.
There are a lot of different kinds of financial services companies in the financial services field. In many countries, financial services companies are also seen as one of the most important parts of the business.
Two trends are going on at the same time in the financial services business right now. One is specialization, in which businesses offer specific services to customers. The other one is globalization, which means that businesses are moving into new and emerging market countries.
This piece talks about some well-known names in the financial services business.
Different Types of Financial Services Businesses
Some companies in this sector are:
- Banks that do investments
- Managers of money
- Brokerage houses
- Money Banks
- Banks and lenders
- Business Insurance
- Public accountants and tax firms
- Companies that give credit
- Companies that handle payments
- Companies that sell homes
- Fintech companies
Financial services companies work with both individual and business clients. Along with the Apple Card and Amazon Pay, companies like Apple and Amazon can be thought of as banking service providers.
Big Names in Banking and Finance
The Berkshire Hathaway
- It began in 1839 as the Valley Falls Company.
- Headquarters are in Omaha, Nebraska.
- Warren Buffett is the CEO.
- As of August 2022, the market was worth $645.66 billion.
A lot of people have heard of Warren Buffett’s company, Berkshire Hathaway (BRK-A). Buffett is one of the richest people in the world. A lot of people around the world own very expensive shares of this company. They sell on the New York Stock Exchange (NYSE).
Berkshire Hathaway was started in Rhode Island in 1839 as the Valley Falls Company. Its first business was making textiles. Buffett got involved with the company in 1962 when he started buying shares. A few years later, he took full control.
Companies that Berkshire Hathaway has bought over the years have a history of making money for the company. GEICO, National Indemnity, and General Re are all insurance companies owned by the global conglomerate. Berkshire Hathaway, the parent company, is one of the largest insurance companies in the United States because of these three businesses’ assets.
In addition to Helzberg Diamonds and other jewelry companies, Berkshire Hathaway now owns companies in the furniture business, real estate, transportation, and more.
This financial services company also worked in the newspaper printing, candy making, retail, and utility businesses.
The American Express
- Started in 1850
- Main office: New York, New York
- Stephen Squeri is the CEO.
- As of August 2022, the market was worth $118.97 billion.
American Express (AXP), which has been around since 1850, is one of the oldest banks in the United States. It used to give freight forwarding services. After that, it started offering flight services.
It was one of the first businesses in the world to accept charge cards, and its signature gladiator logo, which was made in 1958, is easy to spot. Amex, which is short for American Express, is now a Fortune 100 company and a part of the Dow Jones Industrial Average (DJIA).
American Express is still doing well even though Visa and MasterCard, two of its biggest competitors, have more aggressive credit card marketing tactics. The company has put most of its attention on its credit card products, making several cards with hotels that share their name.
It also offers other travel services, like traveler’s checks, and has started selling credit cards. The fact that American Express can offer the high-end Centurion card for a $10,000 initial fee and a $5,000 yearly fee shows how important it is to the company.
Wells Fargo
- Started in 1852
- Headquarters are in San Francisco, California.
- Charles Scharf is the business leader.
- As of August 2022, the market was worth $169.345 billion.
Wells Fargo (WFC) is a global bank and financial services company with branches all over the United States that offer both personal and business banking. It is also present in Tokyo, Hong Kong, London, and Singapore. Based on market value, the company is one of the biggest banks in the US and one of the 100 biggest companies in the US.
It is interesting to note that Wells Fargo has the first bank charter ever given out in the United States. In 2008, the company bought Wachovia Bank, beating out Citigroup (C), one of its main rivals.
The company has had its fair share of problems, even though it is successful and well-known in its field. One of the most important was when offices opened 1.5 million credit card, checking, and savings accounts for customers without their permission. This got a lot of attention in 2016, and Wells Fargo was fined $185 million because of it.
Schwab Charles
- Started in 1971
- Main office in Westlake, Texas
- Vice President of Business: Walter Bettinger
- As of August 2022, the market was worth $138.40 billion.
Chuck Schwab was one of the first people to offer lower brokerage fees in 1975. Individual investors liked this change so much that, within a decade, his company opened about 100 stores, started providing quotes 24 hours a day, grew its customer service hours, and even began looking into what would become online services. Schwab was known as the biggest discount broker in the United States.
In 1983, Bank of America bought Charles Schwab. In 1987, Chuck Schwab set up a buyback and then took the business public. Schwab began giving financial services and goods like the Schwab 1000 Fund®, the No-Fee IRA, and the Schwab Mutual Fund OneSource® service to independent financial advisors. In 1996, Schwab made computer trading available to everyone.
Charles Schwab now has 33.9 million trading accounts (with an average of 5.22 million trades per day), 1.7 million banking accounts, and works with about 15,000 independent advisor firms. Its client assets are worth $7.3 trillion. It has 35,200 employees.
Pay with PayPal
- Started in 1998
- Headquarters are in San Jose, California.
- Chairman of the Board: Dan Schulman
- As of August 2022, the market was worth $108.99 billion.
PayPal was one of the first companies to work with money. It is still one of the most innovative payment methods on the cutting edge of the digital payment revolution. It was started in 1998 and only works online. Its payment portal lets people and companies make safe financial transactions. As of Q2 2022, it had 429 million registered merchant and customer accounts and allowed 5.5 billion payments to be made.
Visa, Bank of America, Banorte, Barclays, Citi, HSBC, JPMorgan Chase, ShinhanCard, Wells Fargo, American Express, Discover, Mastercard, FIS, Paymentus, and Synchrony are just a few of the big banks that PayPal has teamed up with.
In 2019, PayPal became the first business in China to be approved to serve as an online payment service. It keeps adding more payment options around the world. PayPal added Checkout with Crypto in 2021 to make sure that payments made with coins were safe.
The Goldman Sachs
- Started in 1869
- Main office: New York, New York
- Officer in charge: David Solomon
- As of August 2022, the market was worth $116.32 billion.
It is a global financial organization called Goldman Sachs Group, Inc. Its goal is to support long-term economic growth and financial opportunities. It provides services in investment banking, securities, investment management, and private banking. A wide range of people and businesses, including governments, companies, and other financial institutions, use the service.
Goldman Sachs helps businesses with finances, mergers and acquisitions, and other deals by giving them advice and providing services. Its investment study gives clients great ideas and analysis for the stock, bond, currency, and commodity markets. It also helps people build wealth through financial management services that cover all major asset classes.
Apple and Goldman Sachs worked together to make the Apple Card. The J.D. Power 2022 U.S. Credit Card Satisfaction Study put the company and the Apple Card as the most satisfied credit card products in the country.
Rocket Home Loan
- Started in 1985
- Headquarters are in Detroit, Michigan.
- Chairman of the Board: Jay Farner
- As of August 2022, the market was worth $16.99 billion.
(How much money Rocket Companies is worth on the market; Rocket Mortgage is their main business.)
Rocket Mortgage says it is the largest mortgage company in the United States. It used to be called Quicken Loans, but in 2021 it changed its name to Rocket Mortgage to better reflect its mission to make it easier for people to get mortgages by using new technology and a digital platform.
Rocket Mortgage started offering mortgage loans online. It lets you apply online, lets you choose your own close time and place, lets you track your loan 24/7, and has award-winning customer service. At the end of 2017, it beat out 30,000 other mortgage lenders to become the biggest in the U.S.
It teamed up with Q2 Holdings in August 2022 to offer its digital home loan application and live mortgage help through Q2’s online banking platform. Q2 Holdings is a financial services company that helps banks and lenders become more digital.
Which of The Following Are Examples of Financial Services?
Companies all over the world that work in the financial services sector give a wide range of financial services. Some of these services are mortgages, credit cards, payment services, real estate, taxes and accounting, investment funds, and banks.
What Is the Biggest Company that Does Financial Services?
Market caps change all the time, which means that ranks also change. But Visa is the biggest financial services company in the world. Its market value was $430.20 billion not long ago.
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Which U.S. Bank Has the Biggest Market Value?
With a market value of $338.47 billion, JP Morgan is the biggest bank in the United States.
In Short
In many countries, the financial services business is very important for keeping the economies healthy. There are many companies in this field that offer a wide range of financial services to both individuals and businesses.
In our modern, interconnected world, the financial services industry is an important part of daily life because it helps money move around the world.