Financial Institution is FI full form in banking. A Financial Institution (FI) is a firm that deals in both financial and non-financial transactions like money, loans, investments, and currency exchange. Financial institutions include banks, lending brokers, trust organizations, insurance brokers, and brokers, among others, in the sphere of financial services. Almost everyone in a developed economy has at least one financial institution’s president.
Financial Institutions Types
- Commercial Banks: A commercial bank is a type of financial institution that receives investments, offers accounting services, makes lending, private, and secured loans, and offers basic financial products such as certificates deposit (CD) and storage accounts for individuals and small businesses. Most people make their bank a commercial bank, as opposed to an investment bank.
- Insurance Companies: Non-banking entities such as insurance companies are among the most popular. Insurance is one of the oldest financial services, whether for individuals or businesses. Asset protection and financial risk protection, provided by insurance products, are critical services that enable individuals and businesses to invest in ways that promote wealth accumulation.
- Investment Banks: Investment banks specialize in transaction-related services such as investment banking and asset offers, including initial public offerings (IPOs). They frequently provide investors with loans, operate as market makers on stock exchanges, and handle the acquisitions, mergers, and turnover of other businesses.
- Brokerage Firms: Fidelity Investments (ETF) investors and brokerage businesses specialize in offering investment services such as asset management and financial advising services. They also provide access to a variety of investment products, ranging from stocks and bonds to hedge funds and private investments, among others.