Financial Institutions

According to the World Bank’s most recent Findex data, the Middle East and North Africa (MENA) have the lowest percentages of adults with a formal account (18%) and of people on lower incomes with formal access to financial services (9%). ¹

Banking — all the services offered by a bank or credit union — allows individuals to deposit funds, transfer money and complete transactions in a secure place with fair terms. Knowing how financial institutions operate and what services they provide is crucial to making the most of your money.

Before delving into the nitty-gritty of how financial institutions function, it’s important to understand what a bank is and what services they offer:

• Banks are for-profit public companies owned by government and private shareholders who have purchased company stock. Compared with credit unions, your access to banks is generally greater and you have a wider range of services as an account holder. If you’re looking for an institution that offers online and mobile banking or international ATMs, banks are often better.

¹ http://www.worldbank.org/en/programs/globalfindex