A financial institution, sometimes called a banking institution, is a business entity that provides service as an intermediary for different types of financial monetary transactions. Broadly speaking, there are three major types of financial institution:

1. Depository institution – deposit-taking institution that accepts and manages deposits and makes loans, including bank, building society, credit union, trust company, and mortgage broker;
2. Contractual institution – insurance company and pension fund
3. Investment institution – investment bank, underwriter, and other different types of financial entities managing investments.