A banker may be either a bank owner or a bank executive. A bank is an intermediary financial institution that accepts deposits and channels those deposits through direct or indirect loans. An insurer works in an insurance company, which is an institution that facilitates the management of assets with regard to risk, contingency and uncertainty.
Due to the important economic role of banks and insurance companies — both nationally and internationally — these institutions are highly regulated in most countries.
On a daily basis, bankers and insurers manage the funds and deposits of individuals and businesses that invest in banks for the interest provided on their money. Bankers are crucial in terms of managing and loaning money to people who wish to purchase a house, buy a new car, or develop a business, for example. If people lack the initial capital to buy goods directly, the banks offer the capital at a rate of interest that the borrower is obliged to pay off in the future. In this context, the financial industry fulfils an essential function in society. However, providing loans to risky borrowers at high interest rates was a contributing factor in the collapse of the real estate market in the United States and the subsequent global financial recession. The concentration of wealth into fewer and fewer hands, along with widening financial inequality, sparked global protests and gave rise to the “Occupy” movements, which demanded, among other things, an end to high-risk banking practices and so-called grey financial investments. For better or worse, financial institutions retain great power to shift markets and manipulate investment trends.