Financial Institutions Essay Example | Topics and Well Written Essays - 1000 words - 1

Financial Institutions - Essay Example A financial institution has a pool of experts in the fields of investment planning, estate planning, tax planning, and other financial matters at the household level. I do not believe that a busy person who hates numbers and anything about finances will want to have the burden of learning all these. Therefore, a financial institution provides an individual the expertise and perhaps the peace of mind that he will not be burdened with debt once he religiously follows a financial plan. Financial institutions also act as intermediaries for individuals, governments, and businesses, but they treat each customer differently according to the category which one belongs. For individuals, as hinted earlier, they provide financial information where the individual is more likely uninformed. For governments and businesses, they treat them almost the same as institutions but depending on their credit rating. I believe individuals without a finance background have other subjects, interests, or callings. Or perhaps, they are afraid of anything related to money. Nevertheless, financial information is necessary. Therefore, financial institutions bridge that gap of ignorance by providing financial education and information to the public. For the most part, financial institutions deal with businesses as brokers for debts and other sources of money. Of course, this is different for individuals. An ordinary citizen needs financial information in order to live below his means. Businesses need capital and financial information necessary for huge investments.