What companies are in the finance field? All the banks, financial institutes, insurance companies, lending companies, investment companies and finance processing companies are the part of Finance industry. The Credit unions, Saving and loan associations, consumer finance companies, Sales finance companies, Life Insurance companies, Brokerage houses, Investment companies: Unit investment trusts, Open-ended and Closed-ended companies collectively answer to what companies are in the finance field.
What are Finance Companies?
Finance companies are the ones which provide financial services to its clients: individuals, enterprises or governmental bodies. It includes all the companies that offer monetary services such as Budget planning and Management, Credit and investment advisory services etc. Financial companies like Corporate and Consumer finance companies, Credit and investing companies, Bank and non-bank institutions are the example of finance companies. Before acknowledging thoroughly what companies are in the finance field, we must first learn, what actually are financial services?!
What are Financial Services?
The companies that are in the finance field offer financial services to their clients. They are the finance processing companies like lending and investing companies, bank and insurance companies, corporate and consumer finance companies. Financial services are basically of three types; these are related to Personal Finance and Consumer Finance and Corporate Finance. In the first case the services are offered to manage and invest a person’s personal finance, I.e., saving, budgeting, investing.
There are consultancies and financial institutes who do the job; while on the other hand, the second case covers financial management with the help of debt provision and investment advisory institutes. The third type considers credit and money management of enterprises.
KeyPoint’s to Remember:
- The most prominent service of financial institutions is credit management.
- Credit/Loan offered by such companies varies from Long-term, Medium-term to Short-term.
- The loans could either be Secured or unsecured with their respective conditions of repayment.
- Finance companies propose Personal loans and consumer loans.
- Clients are viewed as individuals and corporations both throughout the article.
1.1 Types of Financial Service Company:
Following are the companies that offer Financial services to general public, organizations and governmental institutes. They exemplify what companies are in the finance filed.
The first Financial institute that is prominent in the financial field is Central bank. The Central banks are the dominant banks of any government or nation. All the Financial services offered by such banks are in context to supervision or protection of a nation’s financial structure; which means they do not facilitate general public, as for them, commercial banks are there. The Central banks act as a nation’s bank or banker’s bank. They offer their services to other banks, lend money and support them while they touch the lines of bankruptcy.
These banks manage foreign exchange and have other functions along with the provision of financial services such as making and finalizing monetary policies, reserve management, coins and currency issuance with addition to other miscellaneous services.
The second most popular financial institute is Commercial bank. The Commercial banks accept deposit and grant credit to the general public. Their customers are the community members and citizens of a nation. The money management and investment have a different procedure relative to financial companies. The customers open a current or saving account within the bank to save their investment or to regulate the cash-flow. However, they can take a loan from the bank through a credit card or separately.
Other than the aforementioned functions, commercial banks also offer different financial services. They buy securities on behalf of the customers and settle the accounts.
The third financial institute in our list of best financial companies is the Credit Union. These are the organizations that make their member the owners and consumers of every input and output. Credit unions are generally non-profit making institutions rightly called as “Corporative”. The members are categorized into two perspectives: Member-savers and Member-borrowers.
One type of participators supply money into the union (they save or deposit a sum of finance) and the second type of members borrow or take it as loan. The interest rates are lower and the saving rates are higher in such collaborative programs.
Sales finance companies (SFCs):
Sales finance companies are the fourth most eminent financial companies that are found in the finance industry. These are the companies that do not directly grant credit to their customers rather they are in contact with retail or manufacturing companies that sell consumer goods and services. They purchase “consumer finance contacts” from these sellers and dealers.
For example, if a customer wants to purchase a car and doesn’t have adequate money to make the whole payment, the car dealer leads them to buy it by borrowing money from related SFCs. These companies lend money to the customers and then repays the credit in instalments.
Consumer Finance Companies (CFCs):
The fifth widely known finance company is the consumer finance company. The title explains it all. These are the companies that lend money to the people who want to buy something; so that they fulfil their payment requirement. The difference between CFCs and SFCs is prominent by their function limitation. Sales finance companies always grant credit to third parties; while consumer finance companies directly grant credit to its consumers.
Most retailers have “Consumer finance” option, where they finance the buyers through their own resources or by directing them to third parties (In the aforementioned case the coverage is always within the heads of ‘Sales finance Companies’ - Although it doesn’t name it). Consumer finance companies always work as separate entities. Generally, the granted credit involves Vehicle loans, Personal product loans, Real Estate Loans/Mortgage loans.
Life Insurance companies:
The life Insurance companies are on the sixth number on our list of the companies that appear in the finance field. Clearly, Insurance companies are the type of Non-bank Financial Institutes that help to manage the Finance through constant submission of funds till a required period. There are Mortgage contracts that could be repaid through a life insurance policy. Some special policies are made for such cause for example “Credit Life Insurance”. It helps paying-off the debt through the sum amount received at maturity of the policy or death of the policyholder.
The seventh best finance company lead us towards Brokerage houses. These are also a type of financial institutions that provide a variety of financial and investment services to the clients. They work as an intermediary between a buyer and seller of securities. Brokerage Houses or firms charge a small amount of commission for providing these services. Other than facilitating security transaction, brokerage houses also give investment and income tax consultation. They offer estate planning too.
We mark investment companies on eighth number for what companies are in the finance field. The investment companies are solely made for a collective purpose to serve a benefit to the members. There are generally two types of investment companies that provide financial services: Unit Investment Trusts (UIT), Managed Investment Companies (Open-ended and close-ended).
Unit Investment Trusts (UITs):
The unit investment trust is the first type of an investment company. These companies/trusts offer investment services to its members. They are incorporated for a special period without the board of directors and a portfolio manager. The UITs incorporate and manage it’s regulation under a special ordinance. All the members pool-in their money, which is then invested in different types of pre-determined securities such as stocks shares, bonds and others. When the members invest a sum of money, the UIT subsequently give out units to them; which are redeemable later. Additionally, the members absorb the profit through capital gains and dividend.
Managed Investment Companies:
Managed Investment companies are the second type of investment company. These companies are include open-ended companies and close-ended companies. Mutual funds for open-ended and insurance companies, lending institutions and other financial bodies inclusive of standard required terms for closed ended are the fine examples of what companies are in the finance field.
Open-ended companies: These are also called mutual funds.
Open-ended investment companies are handled by a portfolio manager; who declare and manage the type of investment securities of the mutual funds. All the members invest a certain amount in the fund which is later invested on specific securities.
The working pattern of mutual funds are the same as UITs but with the exception of work management; as mutual funds are supervised and managed by internal authorities, which is not the case with UITs. There are several types of mutual funds which are created for specific purposes; Besides, some mutual funds have the capacity to invest in different securities which relief the member from the potential risk.
These are the companies which provide financial services through investment management. Closed-ended companies make only one initial public offering and don’t sell their shares from time to time. Once people buy the shares, the companies invest the amount in different securities. These corporations are also supervised and managed by internal authorities. The shares of such companies are not redeemable, which means these companies are not liable to buy-back their shares from those members who want to return them.
1.2 List of Top Financial Companies 2020:
The Forbes Magazine issues a list of 2000 Global public companies every year. It enlists them focusing on four dominant factors: sales, revenue, asset and market share.
So basically what companies are in the finance field? — According to the latest data of April 30, 2020; the following 8 Financial service companies appeared in the ‘Top 10 list’ of the Forbes global 2000.
These are inclusive of Banks, Insurance companies and Investment companies that offer Personal finance, Corporate finance and investment services with other miscellaneous services.
1. Industrial and Commercial Bank of China (ICBC):
The first financial institute in the top list is ICBC.It is a multinational banking company which was established on January 1, 1984. It is basically a commercial bank owned and controlled by the Chinese government. The Banks provide a wide range of financial services to their clients. As per the 2019’s Annual Report of ICBC, the bank own total assets worth of 30,109,436 Million RMB.
|Industry||Banking, Financial Services and Investment Services|
|Financial Services||Finance, Insurance, Consumer and Corporate Banking, Investment Banking, Investment Management, Private Banking, Mortgage Loans, Credit card services|
|Revenue||313,36 Billion yuan (Chinese currency) *as of 2019 Annual Report|
2. China Construction Bank (CCB):
The second leading financial institute in the world is CCB. It is a leading large scale Commercial Bank of China. It first incorporated in 1, Oct 1954 with the name of “People’s Construction Bank of China (Chinese: 中国人民建设银行), which was later changed to China’s Construction Bank. The bank has both personal and corporate customers.
It has 347,156 employees working in its 14912 banking outlets. Besides the Forbes global 2000, it has also ranked 5th among all the listed banks of the world subjective to its market capitalization of USD 217,686 million.
|Industry||Banking, Financial Services, Investment Services and Wealth Management|
|Financial Services||Personal Banking, Corporate Banking, Treasury, Pension and [Investment Banking, Insurance, Advisory services, Agency Services, Custody Services, Guarantee services, Fund management|
|Revenue||269,222 Billion yuan (Chinese currency) *as of 2019 Annual Report|
3. JP Morgan Chase:
J.P. Morgan Chase is the third largest global Financial Institute in 2020 while the first largest financial body in America. It was founded back in 1877, which makes it the oldest bank having a history span over 200 years. The bank serves direct consumers and small businesses. It has total assets worth 2.6 trillion USD. JP Morgan chase is not only a commercial bank but it works as an investment bank too.
|Industry||Banking, Financial Services, Investment services|
|HQ||New York City, US|
|Financial Services||Financial services to Personal and Corporate clients, Investment banking, Commercial banking, Asset management, Financial transaction processing|
|Revenue||$115,627 billion USD *as of 2019 Annual Report|
4. Berkshire Hathway:
The forth best financial institute in the global finance field is Berkshire Hathaway. It is a multinational company that operates in different industries. It has multi-product-line. The company first started off as a textile company in 1856 and later commenced its business in various industries with distinction to Capital goods, real estate, media, food and beverages, furniture, material and construction, logistics, electric transmission and utilities. As far as the financial sector is concerned it indulges itself in Insurance and finance, Mortgage financing, bond insurance, liability insurance, business services. Berkshire Hathaway owns total assets worth of US$817.73 billion. GEICO and Berkshire Hathaway assurance are one the prominent names of its financial product-line.
|HQ||Omaha Nebraska, US|
|Financial Services||Insurance and Finance|
|Revenue||$254,62 billion USD *as of 2019 Annual Report|
5. Agricultural Bank of China (ABC):
The Agricultural Bank of China is the fifth biggest financial institute of the world in 2020. It provides banking services to all its clients; who are mainly direct consumers, enterprises and other etc. It was established in 1951. The bank offers a variety of financial services. All four largest global banks are from china and ABC is one of them. The bank owns CN¥22.609 trillion worth of total assets.
|Industry||Banking and Financial Services|
|HQ||Beijing, China .|
|Financial Services||Corporate Banking, Personal Banking, Treasury Operation, Equity Investment, [Investment banking]|
|Revenue||212.92 Billion yuan *as per Statista 2019 report.|
6. Ping an Insurance Group:
Ping an insurance (Group) is the sixth largest financial institute worldwide. It is originally a financial service company but it is seen as a conglomerate firm. The group is based in China. Although the name suggests its services relative to insurance sector alone but it has vast operations in different industries such as financial services, auto services, real estate services, healthcare, and tech. The company is the world’s leading Fintech company with over 560 million internet customers along with 210 million traditional retail customers. According to Statista, the group owns total assets of 8.22 billion yuan.
|Financial Services||Property &, Casualty Insurance, Life & Health insurance, Fintech and health tech, asset management and banking|
|Revenue||683.2 billion yuan *as per latest data of (2020)|
7. Bank of America (BOA):
The Bank of America is the seventh biggest financial institution in the finance field. It is a multinational investment bank which also offers various financial services within its domain. The bank is globally recognized as one of the top financial institutions. It equally deals with individuals, organizations and governmental bodies. As per 2019’s Financial reports, BOA has total deposits of $1.43 trillion from all its business lines while the total lending was done in $983 billion. The bank owns $2.434 trillion worth of total assets.
|Industry||Banking and Financial services|
|HQ||North Carolina and New York, US|
|Financial Services||Personal Banking, Corporate Banking Investment Banking, Wealth Management|
|Revenue||$91.24 billion USD.*as per 2019 Annual Report|
8. Bank of China (BOC):
The Bank of China is the eighth greatest financial institute in the finance market. It is state-owned commercial bank, which was established on February 5, 1921. The bank carries its operations within the Chinese mainland as well as 31 other foreign countries. It has approximately 309,384 employees as per Statista’s matrix. The Financial Analysis of 2019 declared that the bank received total corporate deposits of 8,301,469 million yuan and landed 7,986,380 to the sector whereas the number of Personal deposits revealed as 6,989,648 million yuan and credit was given unto 5,047,809.
|Industry||Banking and [Financial services|
|Financial Services||Corporate Banking, Personal Banking, Investment Banking, Insurance|
|Revenue||201891 Million RMB *as per 2019 Annual Report|
Frequently Asked Questions (FAQs)
Following are the questions that people also ask regarding what companies are in the finance field. Hope it will clear your mind as most of the people have same type of questions in their mind.
Q1- What kind of Jobs are there in finance?
Undoubtfully, Finance in one of the fast-growing sectors of the global world right now. According to the Financial Service Global Market Report 2021, the revenue of the financial market was $20490.46 billion in 2020 and it’s expected to increase to $22515.17 billion in the current year 2021. Many Financial companies are transforming and offering services to the internet customers through Fintech. Following are the Entry-level jobs that you could apply for;
- Banking: Loan processor, Mortgage consultant, Account opener, Bank teller, Credit analyst, Relationship manager.
- Investment: Investment banker, investment broker, Security analyst,
- Accounting: Bookkeeping, Financial reports manager, Financial analyst
- Insurance: Operations manager, Underwriter, Claims Representative, Loss Adjuster, Insurance agent
- Corporate Finance: Financial planner, Financial Analyst, Financial officer
- Financial Advice: Investment advisor, fund manager.
Q2- What is the Financial Service Industry?
It is the industry which operates for the sole purpose of growth and management of money whether on small-scale or large-scale. It offers services to direct consumers, small businesses, big enterprises and governmental institutes There are numerous financial services that are offered within the sector such as; Banking services, Insurance Services, Investment Services, Personal finance services, Corporate Finance services, Consumer finance services, Brokerage services etc.
The Global Financial services market has assets worth of 3.78.9 trillion US dollars according to 2018’s survey. Additionally, The Market value of the global banking sector alone is about 5.2 trillion euros in the third quarter of 2020 (data taken by Statists.com).
Q3- What are TOP Finance companies in the world?
There are different factors to rank a company best to worst I.e. Some examine its revenue, some sales and other market shares. There should be at least one solid factor in your mind while carrying out career-hunt for what companies are in the finance field that is most Prominent and value-generated.
Oftentimes there are situations when the largest financial companies worth billion dollars are marked inferior by staff members. For Example, Berkshire Hathaway is the biggest global financial service company with a revenue of $254,62 billion dollars but it doesn’t rank 1st by Employee’s ranking list. Therefore, your research should be processed through your prioritized factor. Besides following is the list of top 10 financial service companies according to Net income generated,
- ICBC: 44,260 million USD
- China Construction Bank: 37,200 million USD
- JP Morgan Chase: 30,709 million USD
- Agricultural Bank of China: 29500 million USD
- Bank of America: 28,140 million USD
- Bank of China: 27970 million USD
- Wells Fargo: 22,390 million USD
- China Life Insurance: 22,040 million USD
- Citigroup: 16,672 million USD
- Ping An Insurance Group: 16,237 million USD
Q4- What are Top Finance Companies 2020?
Below are the top ten finance companies according to the Market Capitalization (Market cap);
- Berkshire Hathaway: Market cap - $555.721 Billion
- JPMorgan Chase: Market cap - $423.032 Billion
- Bank of America: Market cap - $305.819 Billion
- Wells Fargo: Market cap - $197.791 Billion
- Citigroup: Market cap - $166.359 Billion
- American Express: Market cap - $106.774 Billion
- Morgan Stanley: Market cap - $87.718 Billion
- BlackRock: Market cap - $86.326 Billion
- U.S. Bancorp: Market cap - $85.309 Billion
- Goldman Sachs: Market cap - $84.273 Billion
Q5- What is the List of Finance companies in the USA?
- American Express
- Fidelity Investments
- Charles Schwab Corporation
- Goldman Sachs
- Wells Fargo
- Capital One
- Bank of America
- Ally Financial
- CIT Group
- PNC Financial Services
- Edward Jones Investments
- TD Ameritrade
To conclude, we can say that there are various financial companies that are distinctive in nature, with regards to, what they can offer to the clients. These variate from banks to insurance companies and corporate to consumer finance companies. However, it’s not difficult to learn what companies are in the finance field, as there are numerous Finance companies maintaining the global financial market.