A non-bank financial institution (NBFI) is a financial institution that does not have a full banking license or is not
supervised by a national or international banking regulatory agency.
NBFIs facilitate bank-related financial services, such as investment, risk pooling, contractual savings and market brokering.
Examples of these include insurance firms, pawn shops, cashier’s check issuers, check cashing locations, payday lending
currency exchanges, and microloan organizations.
Alan Greenspan has identified the role of NBFIs in strengthening an economy, as they provide
“multiple alternatives to transform an economy’s savings into capital investment
and act as backup facilities should the primary form of intermediation fail.