Bloomberg once stated that the present-day economy relies heavily on the finance industry, vital support, and resource for businesses to flourish by offering funding and proficient knowledge.
When the topic of finance arises, commonly, one’s thoughts go straight to money and Wall Street.
Many understand that businesses in this industry are solely focused on handling investments and managing funds.
Despite popular belief, it is well-known that the finance industry encompasses an intricate web of specialized subsectors.
These range from banks to investment firms and encompass financial regulators and financial markets.
Different monetary instruments exist, such as equities, fixed-income securities, ETFs, bonds, and derivatives.
Additionally, the realm of financial technology is burgeoning at a phenomenal pace.
The industry divides itself into distinct areas, including managing potential hazards and uncertainties, handling funds and assets for clients with significant net worths or investment portfolios, developing strategies to optimize financial situations over the long term, and facilitating economic expansion.
Gaining a comprehensive comprehension of the finance sector necessitates profound introspection.
It may be imperative to furnish lucid and detailed information to the masses about what companies are in the finance field and whether makes they qualify to be one.
This article aims to clarify the doubts about the different services offered by financial companies and lists the top 15 companies in the finance sector.
Companies or institutions involved in the finance domain are known as finance companies. They offer individuals, businesses, and organizations various money-related services, such as retail banking and corporate banking. These companies in the financial sector play an integral part in the growth and development of society as they provide the necessary help to these individuals and businesses with investment ideas and planning.
Lending, leasing, investing, insurance, etc., are some areas in which financial companies are involved.
Broadly speaking, the sectors in which the finance companies specialize are as follows:
What companies are in the finance field that rank in the top 15?
At the time of writing, the top 15 finance companies based on market-cap are as follows:
Name | Berkshire Hathaway Inc. |
Description |
|
Year Founded | 1839 |
Founders |
|
CEO | Warren Buffett |
Headquarters | Omaha, NE, USA |
Employees | 383,000 |
Market Cap | $669.61 billion |
Annual Revenue | $234.19 billion |
Website |
Name | Visa Inc. |
Description |
|
Year Founded | 1958 |
Founders |
|
CEO | Ryan McInerney |
Headquarters | Foster City, CA, USA |
Employees | 26,500 |
Market Cap | $454.28 billion |
Annual Revenue | $30.18 billion |
Website |
Name | JPMorgan Chase & Co. |
Description |
|
Year Founded | 1799 |
Founders |
|
CEO | Jamie Dimon |
Headquarters | New York, NY, USA |
Employees | 293,723 |
Market Cap | $383.63 billion |
Annual Revenue | $128.64 billion |
Website |
Name | MasterCard Inc. |
Description |
|
Year Founded | 1966 |
Founders | Several California banks |
CEO | Michael Miebach |
Headquarters | Purchase, NY, USA |
Employees | 29,900 |
Market Cap | $330.88billion |
Annual Revenue | $22.23 billion |
Website |
Name | Bank of America |
Description |
|
Year Founded | 1904 |
Founders | ·
|
CEO | Brian Moynihan |
Headquarters | Charlotte, North Carolina, United States |
Number of Employees | 217,000 |
Market Cap | $244.29 billion |
Annual Revenue | $94.95 billion |
Website |
Name | Industrial and Commercial Bank of China Limited |
Description |
|
Year Founded | 1984 |
Founder | Chinese Central Govt. |
CEO | Gu Shu |
Headquarters | Beijing, China |
Employees | 434,798 |
Market Cap | $214.20 billion |
Annual Revenue | $141.81 billion |
Website |
Name | China Construction Bank Corporation |
Description |
|
Year Founded | 1954 |
Founders | Chinese Central Govt. |
CEO/President | Liu Guiping |
Headquarters | Beijing, China |
Employees | 351,250 |
Market Cap | $161.57 billion |
Annual Revenue | $125.47 billion |
Website |
Name | Wells Fargo |
Description |
|
Year Founded | 1852 |
Founders | ·
|
CEO | Charles W. Scharf |
Headquarters | San Francisco, California, US |
Number of Employees | 238,000 |
Market Cap | $156.04 billion |
Annual Revenue | $73.78 billion |
Website |
Name | Morgan Stanley |
Description |
|
Year Founded | 1935 |
Founders | ·
|
CEO | James P. Gorman |
Headquarters | New York City, United States |
Number of Employees | 82,427 |
Market Cap | $155.07 billion |
Annual Revenue | $50.21 billion |
Website |
Name | Agricultural Bank of China Limited |
Description |
|
Year Founded | 1951 |
Founder | Chinese Central Govt. |
CEO/President | Zhao Huan |
Headquarters | Beijing, China |
Employees | 455,174 |
Market Cap | $150.15 billion |
Annual Revenue | $111.84 billion |
Website |
Name | HSBC Holdings |
Description |
|
Year Founded | 1865 |
Founders | Sir Thomas Sutherland |
CEO | Noel Quinn |
Headquarters | London, United Kingdom |
Number of Employees | 232,957 |
Market Cap | $147.43 billion |
Annual Revenue | $66.40 billion |
Website |
Name | Bank of China |
Description |
|
Year Founded | 1912 |
Founder | Government of the Republic of China |
CEO | Liu Liange |
Headquarters | Beijing, China |
Number of Employees | 306,322 |
Market Cap | $134.01 billion |
Annual Revenue | $93.10 billion |
Website |
Name | Goldman Sachs Group |
Description |
|
Year Founded | 1869 |
Founders |
|
CEO | David M. Solomon |
Headquarters | New York City, United States |
Number of Employees | 48,500 |
Market Cap | $114.74 billion |
Annual Revenue | $47.36 billion |
Website |
Name | Allianz |
Description |
|
Year Founded | 1890 |
Founders |
|
CEO | Oliver Bäte |
Headquarters | Munich, Germany |
Number of Employees | 155,411 |
Market Cap | $97.12 billion |
Annual Revenue | $136.24 billion |
Website |
Name | Citigroup |
Description |
|
Year Founded | 1812 |
Founders | ·
|
CEO | Jane Fraser |
Headquarters | New York City, New York, US |
Number of Employees | 223,400 |
Market Cap | $94.46 billion |
Annual Revenue | $75.3 billion |
Website |
The finance sector comprises different companies offering different services per their specialization and the financial goals of their customers.
Types of financial institutions are as follows:
These are the most common finance companies that people are aware of. Their aptitude and expertise in investment and wealth management are unrivaled due to this designating them as consummate dignitaries.
In addition to their primary services, these establishments offer the conveniences of opening up checking and savings accounts and availing oneself of loans and credit lines.
When companies must raise capital to expand or scale up their business, they often issue stocks and bonds. Investment banks help these businesses with the process.
They also provide consultation for companies looking for Mergers and acquisitions. They even extend their financial services to governments.
Individuals or enterprises may experience unforeseen occurrences, ranging from mishaps to cataclysmic events and ailments. It is incumbent upon insurance firms to provide monetary safeguards against occurrences of untoward nature.
The purveyors of insurance proffer a vast assortment of meticulously crafted and highly specialized policies to cater to potential clients’ diverse needs and necessities.
An array of meticulously chosen provisions like health insurance, life coverage, property assurance, and auto insurance are encompassed within the package.
Credit unions are financial cooperatives owned by their members who have a shared interest in maintaining affordable access to monetary resources and exist to provide cost-effective and convenient banking services.
This establishment is devoid of any profit motive and lacks a stakeholder. The operative activities are conducted solely by the members, without external intervention or influence from third parties.
The gamut of banking services, encompassing not only checking and savings accounts but also loans, credit cards, and the like, offer clients access to economical financial provisions. They aim to benefit their members and communities.
These corporations endeavor to hone in on individuals with subpar credit ratings who require financial assistance acquiring loans from various banking institutions, providing them with loan and credit options.
Their proposal entails a specified loan amount. However, it comes at the expense of an exorbitant interest rate. It is primarily due to their unfavorable circumstances and, as such, exceeds what would normally be expected compared to market standards.
Many companies belong to industries requiring heavy equipment and machinery, such as auto manufacturing, pharmaceutical firms, chemical firms, etc.
Now, since these machines are often very expensive, hence these companies look for leasing options from these leasing companies.
They help these businesses to better utilize their capital in growing the business rather than investing it completely in buying the equipment.
Numerous startups undertake bootstrap financing at the genesis of their journey; however, as they gain prominence and expand rapidly in size and scope, an increment in capital becomes indispensable to sustain such growth.
Various venture capital firms across the globe provide funding to such startups, typically against equity.
These ventures are additionally steered with expert counsel to ensure their ultimate profitability and yield maximum gains upon exit.
It is accomplished by implementing intricate strategies that promote sound financial practices, leading to a fruitful outcome for all involved parties.
Like venture capitalists, private equity firms also invest in return for the company’s part ownership. However, they mostly invest in companies that are already settled and mature.
They invest intending to scale the business to a larger level, such as making it go global. They also provide constant advice on mergers and acquisitions and continuous guidance throughout the scaling-up process.
Hedge funds use a slightly different investment strategy than generic ones.
They aim to give a good return by hedging the investment, i.e., to limit the risk by offsetting the position in an existing investment. They follow various strategies depending on the type of asset and the market.
Among the various investment options at the general public’s disposal, this particular type is a frontrunner in terms of its popularity. This form has garnered immense attention and is widely adopted by people from different walks of life owing to its unique features.
Most individuals do not have the leisure to consistently track and analyze stock market activity or its corresponding charts. Therefore, they allocate their resources to mutual funds as an alternative action.
In common practice, companies in mutual funds gather money from various investors. Subsequently, they allocate these resources towards an expansive investment portfolio of diversified assets such as stocks, bonds, and other pertinent holdings.
The risk exposure is different for different mutual funds, which the customers can choose according to their risk appetite.
These financial companies are focused on providing home loans to retail customers. The interest rates in mortgage loans to homebuyers can be fixed or floating. Apart from normal home loans, they also allow customers to lower their monthly mortgage payments or reduce the loan term through refinancing.
Merchant banks are investment companies that provide different financial services, such as investment banking, corporate finance, and international trade financing. Still, their focus is on middle-market companies. Their solutions are also designed to satisfy their exclusive financial needs.
The weighty duty of managing and overseeing a country’s monetary network via targeted policy interventions that manipulate the money supply, interest rates, and currency exchange falls upon the venerable institutions known as central banks.
These establishments are imbued with great trust from society to carry out this formidable task with precision and skill. They mainly offer their financial services to Govt. agencies and commercial banking system.
It is within their purview to establish the benchmark interest rates at which financial institutions can borrow and wield significant influence over the circulation of funds.
Amidst financial upheaval, it is frequently observed that banks and various other fiscal entities seek solace in such establishments to procure monetary advances.
Their primary responsibility is safeguarding the prevailing state of financial equilibrium in the market while taking all essential measures to mitigate any prospective hazards.
Individuals seeking to invest their wealth or engage in stock and security transactions are typically serviced by establishments referred to as Stock Brokerage firms.
These entities buy and sell such commodities on behalf of clients seeking financial growth through investment activities.
Utilizing their online platform, they empower patrons to govern their investments while dispensing astute guidance and instruction on making shrewd purchases or sales contingent upon the fruits of extensive exploration.
In this age of ecommerce and other forms of online business, online payment is of utmost importance. The companies that enable these transactions to enable businesses to accept online payment are known as payment gateways.
These companies integrate the payment gateways in the websites or the apps that receive the payment. They also provide additional services such as billing, multiple payment options, fraud detection and prevention, and payment history.
A credit card is a widely used financial instrument that offers individuals a convenient and flexible of accessing credit, especially at the time of purchase.
It acts as a line of credit allowing cardholders to borrow money up to a predetermined credit limit.
When someone buys something and the transaction is made using a credit card, the cardholder effectively borrows funds from the card issuer to complete the transaction.
The cardholder then has the option to repay the borrowed amount in full by the due date or carry a balance and make minimum monthly payments, incurring interest charges on the outstanding balance.
There’s a wide variety of credit cards available in the market. Some of the most popular examples of credit cards are American Express, Chase, Discover, etc.
Also Read:
Finance is one of the hardest industries to work for. Most of the jobs in this sector are highly skilled, and one needs to prepare themselves right from the junior level. Before applying for full-time jobs, attending specialized courses related to finance, like a finance degree, and doing some related internships is recommended.
Many job roles and positions in the finance field offer a lucrative salary with added perks and bonuses. Some of the highest-paid ones are as follows:
Yes, at least basic knowledge about mental arithmetic that enables fast calculation, algebra, trigonometry, statistics, and probability is mandatory in finance. One can decipher complex financial data with a basic understanding of these math skills.
Read More:
Now we know what companies are in the finance field. They vary from banks and investment companies to digital payment gateways and mortgage loans. They form an integral part of our society, helping the socio-economic growth sustainably. They also provide excellent high-paying job opportunities in multiple areas. They facilitate the smooth flow of money across different domains across the globe and enable a well-ordered business environment.
Disclaimer: All the information presented in the article has been collected independently by BitMoneyAlpha and has not been reviewed or approved by any of the aforementioned companies. The company information may vary. Please check the company websites for the latest information. The statements and opinions expressed in this article belong to the author and do not necessarily represent the views or opinions of any company or organization. The content is for informational purposes only. It is not financial advice. So, before investing, do your due diligence and always invest what you are comfortable losing, as all investments are your responsibility.
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