Financial Institution (FI)

A financial institution (FI) is an organization that provides financial services to individuals, businesses, and governments. These services include accepting deposits, providing loans, investment management, and offering insurance products. Financial institutions are vital to the economy, facilitating capital flow, promoting savings and investments, and supporting economic stability. Common types of financial institutions include banks, credit unions, investment firms, and insurance companies, each playing a specific role in the financial system.

Example

A bank, as a financial institution, offers savings accounts, personal loans, and credit cards to consumers while also providing business loans and investment services to companies.