The nonbanking Financial Institutions are the institutes in which they do not have the complete and comprehensive license to perform banking operations stop they also cannot accept deposits from the public. But the thing about nonbanking Financial Institutions is there facilitating alternatives for providing financial services to the public and no option is available to them.
This service includes investments that her collective and individual as well. It further includes things like risk pooling brokering and check to cash. These nonbanking Financial Institutions are also a source of consumer credit and it also includes license banks out there.
Its examples include insurance firms and currency exchanges. Pawnshops are also an example of a nonbanking financial institution.
Source: https://www.entrepreneurshipsecret.com/non-bank-financial-institutions/