Different Types of Financial Institutions; Definition/Characteristics (MATCH VERSION)

Full-service bank

Financial institution that offers a wide range of banking services to the public, including deposit accounts, loans, and other financial products

Credit union

Non-for-profit financial institution owned and controlled by its members; offer many of the same financial services as banks, like savings and checking accounts, loans, and credit cards

Brokerage firm

Financial institution that acts as an intermediary, facilitating the buying and selling of securities (like stocks, bonds, and mutual funds) on behalf of investors

Transactional Services: Checking accounts: for everyday transactions like paying bills and making purchases

Full service bank

Transactional Services: Savings accounts: for storing and growing savings with interest earnings

Full service bank

Transactional Services: Debit/credit cards: For convenient purchases and managing credit

Full service bank

Transactional Services: Digital banking: Offering online and mobile platforms for confident account access, transfers, and bill payments

Full service bank

Credit and Lending Services: Personal loans: for financing various needs, from home improvement to debt consolidation

Full service bank

Credit and Lending Services: Auto loans: for purchasing new or used vehicles

Full service bank

Credit and Lending Services: Mortgages: for financing home purchases or refinancing existing mortgages

Full service bank

Credit and Lending Services: Home equity loans/lines of credit: for borrowing against home equity

Full service bank

Investment and Wealth Management: Investment accounts: providing access to various investment options like stocks, bonds, and mutual funds

Full service bank

Investment and Wealth Management: Retirement accounts: offering tax-advantaged retirement savings options like IRAs

Full service bank

Investment and Wealth Management: Wealth management services: tailored financial planning and investment management for high-net-worth individuals

Full service bank

Owned and controlled by their members, who elect a volunteer board of directors to manage the insititution

Credit union

Can translate to a focus on serving members’ needs rather than maximizing profits for shareholders

Credit union

Surplus income is often returned to members through lower loan rates, higher savings rates, and reduced fees, potentially saving you money

Credit union

Generally offer competitive interest rates on savings accounts and loans, along with lower fees compared to banks

Credit union

Many actively promote financial literacy and provide educational resources to their members

Credit union

Full-service brokers

Offer comprehensive financial services, including investment advice, financial planning, retirement planning, and wealth management

Discount brokers

Primarily focus on executing trades at lower commissions and fees, providing online platforms for self-directed investors

Online brokers

Offer similar services as discount brokers, but with a greater emphasis on online platforms and mobile apps

Robo-advisors

Utilize algorithms to provide automated investment management and financial planning services at a lower cost than traditional advisors

Provides tools and interfaces for investors to buy and sell stocks, bonds, mutual funds, ETFs, and other securities (trading platforms)

Brokerage firm

Many offer access to market research, stock analysis reports, and other resources to help investors make informed investment choices

Brokerage firm