In today's financial services marketplace, a financial institution exists to provide a wide variety of deposit, lending and investment products to individuals, businesses or both. While some financial institutions focus on providing services and accounts for the general public, others are more likely to serve only certain consumers with more specialized offerings, such as Nobilis Global clients and their needs.
To know which financial institution is most appropriate in serving a specific need, it is important to understand the difference between the types of institutions and the purposes they serve. The major categories of financial institutions which Nobilis Global partners with include central banks, retail and commercial banks, investment banks, investment companies, private investors, hedge funds, insurance companies and mortgage companies.
A central bank is the financial institution responsible for the oversight and management of all other banks. In the United States, the central bank is the Federal Reserve Bank, which is responsible for conducting monetary policy and supervision and regulation of financial institutions. Individual consumers do not have direct contact with a central bank; instead, large financial institutions work directly with the Fed to provide products and services to the general public.
Traditionally, retail banks offered products to individual consumers while commercial banks worked directly with businesses. Currently, the majority of large banks offer deposit accounts, escrow accounts, lending and limited financial advice to both demographics. Products offered at retail and commercial banks include checking and savings accounts, certificates of deposit (CDs), personal and mortgage loans, credit cards and business banking accounts. Nobilis Global concentrates in the area of mortgage loans, escrow accounts, lending and limited financial advice
Credit unions serve a specific demographic per their field of membership, such as teachers or members of the military. While products offered resemble retail bank offerings, credit unions are owned by their members and operate for their benefit. Nobilis Global interaction with them is very limited other than switching accounts to larger banks.
Financial institutions that are mutually held and provide no more than 20% of total lending to businesses fall under the category of savings and loan associations. Individual consumers use savings and loan associations for deposit accounts, personal loans and mortgage lending. Nobilis Global works with these institutions mainly in the mortgage arena.
Investment banks do not take deposits; instead, they help individuals, businesses and governments raise capital through the issuance of securities. Investment companies, more commonly known as mutual fund companies, pool funds from individual and institutional investors to provide them access to the broader securities market. Nobilis Global works globally with these entities for specific financial transactions and the funding of innovative companies, even bridge loans and hard to find inventory loans.
Financial institutions that help individuals transfer risk of loss are known as insurance companies. Individuals and businesses use insurance companies to protect against financial loss due to death, disability, accidents, property damage and other misfortunes. Nobilis Global works with unusual and exotic types of insurance such as LPPI’s Lloyds Payment Protection Insurance, Insurance wraps to bolster derivatives, etc.
Financial institutions that originate or fund mortgage loans are mortgage companies. While most mortgage companies serve the individual consumer market, some specialize in lending options for commercial real estate only. Nobilis Global spans the arena utilizing both residential and commercial loans, and prides itself in out of the box thinking to assist those who cannot accomplish normal mortgage transactions.