Introduction

Introduction to Financial Institutions

These are special places that help move money from people who have extra to people who need it for business.

Financial institutions are organizations that help to mobilize resources from the surplus sector to the deficit sector of the economy.

This means they act as a bridge so that money can reach those who want to use it to create wealth.

They are offices where you can go to do things like saving money, taking loans, or putting money into a business.

They are establishments that render financial services or conduct financial transactions such as investments, loans and deposits for clients.

Basically, they are businesses that handle all types of money matters for their customers.

Importance of Financial Institutions

Almost everybody uses these places all the time in their daily lives.

Most people deal with financial services providers (i.e. financial institutions) almost on a daily basis on a regular basis.

This means that whether you are a trader or a student, you will likely need their help often.

We use them because every action that involves money, like keeping your cash safe or changing Naira to Dollars, happens through them.

This is because every financial activity such as depositing money and getting loans as well as exchanging currencies are done through financial institutions.

In simple terms, you cannot easily do big business or save your money safely without using these institutions.