A financial institution is an organization that provides various financial services to individuals, businesses, and governments. These services can include accepting deposits, offering loans, and facilitating investments. Common types of financial institutions include banks, credit unions, and insurance companies. Financial institutions play a crucial role in the economy by helping to manage money and allocate resources efficiently. They act as intermediaries between savers and borrowers, ensuring that funds are available for those who need them while providing a safe place for people to store their money.