| Description: | The most important activities of companies in the financial sector are acquiring, manage and lending money. The industry has three sub industries: banking, insurers, and allfinanz (both banking and insuring activities).
Companies in the banking industry are aimed at the traditional services like lending and savings of both consumers and companies. Other activities are for example managing public offerings of companies, helping companies with mergers and acquisitions and executing transactions on the stockmarket for their clients.
The insurance industry can be split up in life insurances and object insurances. Products in the life insurance part of the industry are retirement products and life insurance. The object insurances are aimed at physical objects (an exception is the health care) of the clients of the insurance companies.
Companies in the allfinanze industry are performing activities in both the banking industry and the insurance industry.
One magic word inside the finance industry is economies of scale. Finance companies are trying to get bigger and do more types of activities.
Important factors for the profits of these type of companies are the sentiment within the markets, the difference in interestrates and the cutting costs. |
