Difference Between Banking and Finance – Banking vs Finance

Most of the time you can see that banking and finance are used together, but there is a big difference in both. Both terms collectively refer to the services and activities of by the banking and other financial institutions. On this web page, you will learn about the Difference Between banking and finance.

What is the Difference Between Banking and Finance

What is Banking?

Banks become the most important part of today’s business. Most of the business, either its is a small or large venture needs banking services in their routine matter and daily transactions.

Banks are divided into two, like commercial banking and investment banking. Commercial banks are open to accept deposits from the customer and give loans.

Difference Between Banking and Finance

We can understand the mechanism of commercial banks with the instant that, All the businesses who have their surplus funds, deposit their funds in the commercial banks. at the same time, there are some businesses who have not enough money to operate its daily transactions, they approach the commercial banks and borrow loans and bank provides its services by lending loans and charges its interest.

Investment Banks serves the business firms to make their position strong in the stock market. these banks provide the services related to the undertaking to value the company stock, underwriting services to the interest of the potential buyer and also help in the selling of shares in the general public.

banking vs finance

What is Finance?

in literal word the term finance to generating funds for business activities. There are a lot of financial institutions that provide financial services. Each firm provides services differently according to their policies.

The sole purpose of these firms is to back and support investors by making an investment in the stock of investor which increase the value of stock and at the end increase the wealth of the firm. The services provided by these financial institutions may be in any form.

financial services firms make a prediction about the investment of owner and provide assistant that let to an increase in the return on investments.

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