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Sector

Financials sector explained

Companies that move, lend, invest or insure money, such as banks, payment networks, brokers and insurers. Their customers range from households to large businesses.

For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

Companies we cover

2 companies in Financials

  • Robinhood

    HOOD

    Robinhood runs a brokerage and crypto app that earned $4.47 billion of revenue in FY2025 from trading, interest and subscriptions.

    Discloses: someUpdated for Q3 FY2026

  • Visa

    V

    Visa runs the payment network that connects banks, stores and card holders, with net revenue of $45.9 billion in FY2026 (unaudited).

    Discloses: a lotUpdated for Q4 FY2026

How companies in this sector earn

How do Financials companies make money?

  • Banks earn the gap between the interest they charge on loans and the interest they pay on deposits.
  • Payment networks charge banks and other clients fees to carry card payments, and many do not make the loans themselves.
  • Brokers earn interest on customer cash and loans, plus subscriptions and payments from trading firms that carry out customer orders.
  • Insurers collect regular customer payments, called premiums, and pay claims later, investing the money in between.
  • Interest paid, staff, technology, unpaid loans and insurance claims are among the largest costs, depending on the business.

Who regulates it

Securities and Exchange Commission (SEC), for brokers, investment firms and public company disclosure · Financial Industry Regulatory Authority (FINRA), the self-regulatory body for brokers, overseen by the SEC · Federal Reserve, for bank holding companies and payment systems, and for setting interest rate policy · Office of the Comptroller of the Currency (OCC), for national banks · Federal Deposit Insurance Corporation (FDIC), which insures bank deposits and supervises some state banks · State insurance departments, for insurers

What moves results across the sector

  • Interest rates, which change what lenders and brokers earn on loans and customer cash.
  • Consumer spending and card use, which drive the fees payment networks collect.
  • Customer trading activity, which can move broker revenue from one quarter to the next.
  • Rules and court cases on card fees and on how brokers handle customer orders.

Words you'll meet

Key terms

Net interest income
Interest a company earns on loans and investments, minus the interest it pays on deposits and borrowings.
Payment network
The system that carries a card payment between the shopper's bank and the shop's bank.
Interchange fee
A fee the shop's bank pays the card-issuing bank on each card sale, usually passed on to the shop.
Payment for order flow
Money a broker receives from a trading firm for sending it customers' orders.
Margin loan
A loan from a broker to a customer, backed by the investments in the customer's account.
Provision for credit losses
Money a lender sets aside from earnings to cover loans it expects may not be repaid.

Last updated Nov 1, 2026.

Disclaimer

For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

Investing in securities involves risk, including loss of capital. Before making any investment decision, do your own research and consider consulting a registered investment adviser or other qualified professional.

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Cityfort publishes general educational content that explains how listed companies work. Cityfort is not registered with the US Securities and Exchange Commission or any state securities regulator as an investment adviser, and is not a broker-dealer or a member of FINRA. Cityfort does not provide investment, tax or legal advice, recommendations, ratings, price targets or any opinion on whether to buy, sell or hold any security. Nothing on the site is tailored to any person's circumstances.

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