Financial Institution

As the name suggests, a  financial institution (FI) is an organization that provides various financial services: deposits, loans, currency conversion, investments, and so on. In this context, we’re mostly referring to entities like banks, credit unions, and S&Ls, but insurance companies, mortgage companies, and brokerage firms are also financial institutions.

FIs act as intermediaries between B2B and B2C parties involved in monetary dealings. They provide the infrastructure and resources necessary for processing payments, facilitating the movement of funds, and keeping customer funds secure.

Beyond that, most financial institutions also offer a range of payment instruments, such as checking accounts, credit cards and debit cards, safety deposit boxes, retirement accounts, and electronic funds transfers.