The Indian financial sector is vast and highly active. It is giving rise to many players who have an impact on the economy and, at the same time, offer opportunities for both businesses and individuals.
Learning about the various types of financial firms in India & required skills (2026) is a prerequisite for anybody who wants to pursue a career in finance, accounting, investment, or banking.
Each financial firm, from banks & non-banking financial companies to investment firms and asset management companies have different roles, functions, and skills. This blog sheds some light on the various types of financial firms in India and points out the skills one needs to thrive in this fast-changing industry.
Table of Contents:
What is a Financial Firm?
A financial firm is an entity that renders financial services, takes charge of money, or enables the circulation of capital in the economy. They are the ones who connect the depositors and the borrowers, grant credit to businesses and individuals, and provide aid to the affluent and the poor in the form of wealth creation.
The term “financial firm” denotes not only banks but also various kinds of organisations that engage in financial operations like investment brokerage, insurance underwriting, asset management, and so forth. Let us see the following primary features of a financial firm:
- Capital Management: Core to their business is the provision that financial firms are the ones who take money from investors, whether it is stocks, deposits, or corporate treasury cash.
- Financial Intermediation: They are the ones who mediate between the ones having the money (investors, depositors) and the ones who want it (companies, borrowers).
- Risk Assessment: A lot of top financial firms are experts in the field of evaluating financial risks and devising solutions like insurance, hedging, or diversification of investments.
- Regulatory Compliance: The operations of financial firms are closely monitored, and they have to adhere to compliance standards prescribed by authorities such as the Reserve Bank of India (RBI), SEBI, and IRDAI.
- Professional Services: Their services encompass consultancy and advisory not only to individuals and companies but also to the government for making the right financial decisions.
Understanding the function of a financial firm is crucial for anyone who wants to enter the finance world. In addition, it will give you a hint of the firms that are in line with your career objectives and the skills that are the most sought after.
Financial Firms’ Overview | |
|---|---|
| Aspect | Description |
| Definition | A financial firm is an organisation that provides financial services such as lending, investing, insurance, and advisory services |
| Primary Role | It helps individuals and businesses manage money, reduce risk, and grow wealth |
| Types of Services | Banking, investments, insurance, asset management, loans, and financial advisory |
| Regulation | Regulated by authorities such as RBI, SEBI, IRDAI, and PFRDA |
| Career Scope | Offers roles in accounting, finance, analysis, risk management, and consulting |
Types of Financial Firms with Examples
There are various types of Financial firms in India that come in various forms, each serving specific roles in the economy and offering distinct services. Understanding these types helps aspiring finance professionals identify their career path and develop the right skills for each sector. Let us continue discussing various types of financial firms with examples below.
Commercial Banks
First and the most common type is commercial banks. They are financial institutions that accept deposits, provide loans, and offer basic investment products to individuals and businesses. They also form the backbone of the financial system, for example, the State Bank of India (SBI), HDFC Bank, and ICICI Bank.
Non-Banking Financial Companies (NBFCs)
NBFCs provide financial services similar to banks but cannot accept demand deposits. They often focus on loans, asset financing, investment products, and insurance. Examples of NBFCs in India include Bajaj Finserv, Muthoot Finance, and Mahindra Finance.
Investment Firms and Asset Management Companies (AMCs)
Investment firms and AMCs manage funds on behalf of clients, including mutual funds, pension funds, and private equity investments. These firms help investors grow wealth while managing risk. Popular examples include ICICI Prudential Mutual Fund, HDFC Asset Management Company, and Aditya Birla Capital.
Insurance Companies
Insurance firms provide risk management services by offering life insurance, health insurance, and general insurance products. They collect premiums from clients and provide financial protection against uncertainties. Leading examples are Life Insurance Corporation of India (LIC), HDFC Life, and ICICI Lombard.
Stockbroking and Financial Advisory Firms
These stockbrokerage firms, financial advisory firms and others help their clients invest in securities, bonds and other types of financial instruments. The services offered include advisory, portfolio management, and trading support. Some familiar names in the industry are Motilal Oswal, Angel Broking, and Zerodha.
Microfinance Institutions
Small-scale lenders or microfinance institutions extend credit, savings, and other financial services to people in poverty or micro businesses that lack access to conventional banking. They are an indispensable part of the financial inclusion movement. Some examples are SKS Microfinance and Ujjivan Small Finance Bank.
Every type of financial institution needs workers with certain skill sets; accounting, investment analysis, risk management, and customer advisory are some of the areas where the applicable skill sets might vary. Understanding the various kinds of financial institutions helps students in a way that they can be more precise when it comes to their learning and career planning in the financial sector.
Difference Between Financial Institutions and Banks
Even if banks are commonly regarded as the backbone of the financial system, in reality, they are just one piece of a much larger financial ecosystem. The functions of financial institutions and banks may overlap at times, but they still have different purposes.
The main operations of banks are to receive deposits from people and to give out loans and credit facilities. They provide a variety of services such as savings accounts, fixed deposits, current accounts, and personal or business loans.
- The Reserve Bank of India (RBI) strictly supervises the banks, and they are a major part of the country’s payment and settlement systems.
- Public sector, private sector, and foreign banks in India are all household ruling examples of top financial firms in India.
However, financial institutions are a wider category that includes banks and non-banking companies like NBFCs, insurance providers, asset management firms, mutual funds, pension funds, and brokerage houses.
- Though these institutions do not take deposits like banks, they still offer special financial services such as investment management, insurance, wealth management, and corporate finance.
- Financial institutions are supervised by different regulatory bodies such as SEBI, IRDAI, or RBI, depending on their nature of business.
To illustrate the point, the next difference is the variety of services provided. Banks deal in mass and universal products, whereas financial institutions often deal in specific areas of finance like long-term investments, risk protection, or capital market activities.
Consequently, top financial companies in the world hire professionals with specific skills in areas like investment analysis, risk management, portfolio management, and financial advisory. Here is a good comparison table to understand the distinction.
Financial Institutions vs Banks: A Quick Comparison | ||
|---|---|---|
| Basis of Comparison | Financial Institutions | Banks |
| Meaning | Organisations that provide financial services such as investments, insurance, asset management, lending, and advisory services | Licensed institutions that primarily accept deposits and provide loans |
| Scope of Services | Wide range of services including mutual funds, NBFCs, insurance, pensions, and capital market services | Focus mainly on deposits, savings accounts, loans, and payment services |
| Deposit Acceptance | Most financial institutions cannot accept public deposits | Banks are authorised to accept public deposits |
| Regulatory Authority | Regulated by bodies like SEBI, IRDAI, RBI, and PFRDA, depending on the service offered | Primarily regulated by the Reserve Bank of India (RBI) |
| Risk Profile | Risk varies based on the type of institution and service | Generally, lower risk due to strict banking regulations |
| Examples | Mutual fund houses, insurance companies, NBFCs, pension funds | SBI, HDFC Bank, ICICI Bank, Axis Bank |
Banks belong to financial institutions and are thus a smaller portion of them. On the contrary, a bank is always a financial institution, while the other way is not necessarily true. The financial institutions as a whole make a larger ecosystem that facilitates savings, investments, credit, and wealth creation, whereas banks mainly play the roles of money custodians and credit providers.
Our Top Finance Courses – Choose the Right Fit
Different kinds of financial firms need to be understood first, and then one can start becoming a professional in the industry. Properly skilled, globally recognised, and practically exposed individuals are needed for different career paths. The right kind of finance course may help one to annex his/her interests to the functions offered by banks, investment companies, consulting firms, and fintech organisations.
1. ACCA (Association of Chartered Certified Accountants)
ACCA is the best choice for those students who want to create a career in global finance, accounting, audit, taxation, and financial management. It is a solid foundation for financial reporting, compliance, performance management, and strategic decision-making. Professionals with ACCA licenses are sought by audit firms, MNCs, consulting firms, and service centres.
Want to know more about it? Check out our blogs on ACCA Eligibility, Career in ACCA, and ACCA after BCom, etc.
2. CFA (Chartered Financial Analyst)
CFA is for those targeting investment banking, equity research, portfolio management, and asset management as their future job. The lecture lays great stress on financial analysis, valuation, economics, and ethics, thus making it relevant to capital markets and investment firms. Read our other blogs on the CFA subject, CFA pass rates and also the CFA Level 1 Study Plan for 6 Months to clear it in one go.
Read our other blogs on the CFA subject, CFA pass rates and the CFA Level 1 Study Plan for 6 Months to clear it in one go.
3. US CMA (Certified Management Accountant)
US CMA is suitable for modern careers in corporate finance, FP&A, and managerial accounting. It trains professionals in the areas of budgeting, forecasting, cost management, and performance analysis, which are the skills that corporate finance teams and large multinational companies are looking for. Read the US CMA Scope in India to know more about what you can do after completing the qualification.
Read the US CMA Scope in India to know more about what you can do after completing the qualification.
4. Financial Modelling & FP&A Courses
Short-term, skill-based courses like Financial Modelling, Excel, Power BI, and FP&A are ideal for students and working professionals seeking to gain practical exposure. These courses give you insight into how financial data is analysed and used for business decisions, particularly in consulting firms, startups, and finance departments.
Required Skills for Working in Financial Firms (2026) | |
|---|---|
| Skill Category | Key Skills |
| Technical Skills | Financial reporting, valuation, taxation, and budgeting |
| Analytical Skills | Data analysis, forecasting, and financial modelling |
| Digital Skills | Excel, Power BI, financial software, automation tools |
| Soft Skills | Communication, decision-making, problem-solving |
| Regulatory Knowledge | Compliance, accounting standards, and financial laws |
The correct answer to Which Course Should You Take? relies on your future workplace. You want to work in an audit firm, investment bank, corporate finance team, or fintech company. When your qualification corresponds with the skills sought—for example, those at financial firms—
you will be a much more employable candidate and career growth will be more likely.
Conclusion
The financial system in India is changing at a fast pace, where banks, NBFCs, investment companies, insurance players, and fintech companies are all creating a great number of career opportunities. Knowing the financial firms in India and the skills needed in 2026 can help you to make a wise choice regarding your career and your skill development.
Financial jobs are being split up into more specific categories and being driven by data; thus, the employers are searching for people with professional financial understanding combined with practical and ready-for-the-job skills. It just depends on the right finance course and your continuous upgrading of skill set; then you will be able to position yourself for long-term growth and success in India’s competitive finance industry.
FAQ’s
What are the different types of finance firms?
The finance sector includes all sorts of companies: banks, NBFCs, asset managers, investment banks, and insurance companies, plus the new tech startups in finance. The works that these companies engage in include, among others, lending, investing, managing wealth, giving financial advice, and providing digital financial services.
What is an example of a financial institution?
HDFC Bank is one of the examples of financial institutions that offer such services as deposit accounts, mortgages, credit cards, and payment solutions. The other illustrations consist of mutual fund houses, insurance providers, and NBFCs.
What is an example of a depository financial institution?
A commercial bank like the State Bank of India (SBI) is a typical example of a depository financial institution. These institutions take in public deposits and then utilise those funds to give out loans and offer financial services.
