S1103 - Financial institutions, credit unions, banks, investment company, payday loans and cheque cashing.

Operational Details
Banks are chartered under the Bank Act and are primarily engaged in creating and maintaining deposit facilities, providing loans and generally offering a wide range of financial services related to consumer and business needs. Credit unions are under provincial legislation and provide similar banking services. Trust companies are incorporated under the Trust Companies Act, or corresponding provincial legislation. They specialize in two areas, the first being consumer and business loans. The second is in providing mortgage funding. They may act as executors, administrators, receivers of all types of trust, agents for stock and bond issues, and act as real estate agents, etc.

Banks, credit unions, trust companies and mortgage businesses interview applicants for personal, student, and business loans. Research and evaluation of the loan applicant’s financial status, references, credit and ability to repay the loan is undertaken. Documentation is prepared and the loan application is passed to management for approval, or rejection of the loan. Workers also promote the sale of credit and loan services. Reviews and updates of credit and loan files are made. Statements are also prepared on delinquent accounts and passed for collection. In most cases, larger loans, require security and mortgages, chattel mortgages and guarantees are taken as collateral security until the loan is repaid. In the case of a business, a book debt assignment is taken of accounts receivable.

Loan companies offering services such as personal loans, cash loans, payday loans (in person and online) and cheque cashing services are included in this classification. Many of these loan stores now offer online payday loans, personal cash advances and mobile cheque cashing. Finance and loan companies are governed by the Small Loans Act and the basic difference between this type of operation and a bank, is the interest charged. This is due to banks not willing to deal with high risk borrowers without sufficient collateral. To compensate for the added risk, loan companies are able to charge a premium for interest to compensate for taking the greater risk.

Financial and investment firms collect and analyze financial marketplace information such as economic forecasts, trading volumes, financial backgrounds or companies, historical performances and future trends of stocks, bonds, and other investment instruments to provide financial and investment advice. They also prepare company, industry and economic analytical reports, briefing notes and correspondence.

Banks and other financial institutions may incidentally rent out part of their overall facilities to other commercial ventures. However, if they operate separate buildings ,or a separate source of revenue is achieved that can no longer be considered incidental, then consideration must be given for an additional industry for building maintenance and management.

SIC Codes
000000666 - Financial institution, loan company
000000968 - Investment company