What is the meaning of finance?

In a word finance is the management of large amounts of money, especially by governments or large companies.
In a more specific definition, Finance is a broad term that describes activities associated with banking, debt, credit, capital markets, money, and investments. Basically, finance represents money management and the process of acquiring needed funds.
The finance field includes three main subcategories:
1.     personal finance
2.     corporate finance
3.     public (government) finance
Now that a brief introduction of finance has been presented, we can define financial institutes.
What Is a Financial Institution (FI)?
A financial institution (FI) is a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange. Financial institutions can vary by size, scope, and geography. the most common types of financial institutions (FI) are commercial banks, investment banks, insurance companies, and brokerage firms. there are three major types of financial 

institutions:
1.     Depository institutions – deposit-taking institutions that accept and manage deposits and make loans, including banks, building societies, credit unions, trust companies, and mortgage loan companies;
2.     Contractual institutions – insurance companies and pension funds
3.     Investment institutions – investment banks, underwriters, and other different types of financial entities managing investments
financial institution is responsible for the supply of money to the market through the transfer of funds from investors to the companies in the form of loans, deposits, and investments.

The role of financial institutes in economy:
financial operations are a critical part of any economy, with individuals and companies relying on financial institutions for transactions and investing. The primary role of financial institutions is to provide liquidity to the economy and permit a higher level of economic activity than would otherwise be possible. Governments consider it imperative to oversee and regulate banks and financial institutions because they do play such an integral part of the economy. They are regulated by a central government organization for banking and non-banking financial institutions.