Classification codes for a financial technology startup

This industry comprises establishments primarily engaged in providing one or more of the following: (1) financial transaction processing (except central bank); (2) reserve and liquidity services (except central bank); and/or (3) check or other financial instrument clearinghouse services (except central bank). Illustrative Examples: Automated clearinghouses, bank or check (except central bank) Credit card processing services Check clearing services (except central bank) Electronic funds transfer services, including peer-to-peer payment services Cross-References.

See industry description for 522320.

The Sector as a Whole The Finance and Insurance sector comprises establishments primarily engaged in financial transactions (transactions involving the creation, liquidation, or change in ownership of financial assets) and/or in facilitating financial transactions. Three principal types of activities are identified: 1. Raising funds by taking deposits and/or issuing securities and, in the process, incurring liabilities. Establishments engaged in this activity use raised funds to acquire financial assets by making loans and/or purchasing securities. Putting themselves at risk, they channel funds from lenders to borrowers and transform or repackage the funds with respect to maturity, scale, and risk. This activity is known as financial intermediation. 2. Pooling of risk by underwriting insurance and annuities. Establishments engaged in this activity collect fees, insurance premiums, or annuity considerations; build up reserves; invest those reserves; and make contractual payments. Fees are based on the expected incidence of the insured risk and the expected return on investment. 3. Providing specialized services facilitating or supporting financial intermediation, insurance, and employee benefit programs. In addition, monetary authorities charged with monetary control are included in this sector. The subsectors, industry groups, and industries within the Finance and Insurance sector are defined on the basis of their unique production processes. As with all industries, the production processes are distinguished by their use of specialized human resources and specialized physical capital. In addition, the way in which these establishments acquire and allocate financial capital, their source of funds, and the use of those funds provides a third basis for distinguishing characteristics of the production process. For instance, the production process in raising funds through deposit-taking is different from the process of raising funds in bond or money markets. The process of making loans to individuals also requires different production processes than does the creation of investment pools or the underwriting of securities. Most of the Finance and Insurance subsectors contain one or more industry groups of (1) intermediaries with similar patterns of raising and using funds and (2) establishments engaged in activities that facilitate, or are otherwise related to, that type of financial or insurance intermediation. Industries within this sector are defined in terms of activities for which a production process can be specified, and many of these activities are not exclusive to a particular type of financial institution. To deal with the varied activities taking place within existing financial institutions, the approach is to split these institutions into components performing specialized services. This requires defining the units engaged in providing those services and developing procedures that allow for their delineation. These units are the equivalents for finance and insurance of the establishments defined for other industries. The output of many financial services, as well as the inputs and the processes by which they are combined, cannot be observed at a single location and can only be defined at a higher level of the organizational structure of the enterprise. Additionally, a number of independent activities that represent separate and distinct production processes may take place at a single location belonging to a multilocation financial firm. Activities are more likely to be homogeneous with respect to production characteristics than are locations, at least in financial services. The classification defines activities broadly enough that it can be used both by those classifying by location and by those employing a more top-down approach to the delineation of the establishment. Establishments engaged in activities that facilitate, or are otherwise related to, the various types of intermediation are included in multiple subsectors, rather than in a separate subsector dedicated to services alone, because these services are performed by intermediaries, as well as by specialist establishments, and the extent to which the activity of the intermediaries can be separately identified is not clear. Financial industries are extensive users of electronic means for facilitating the verification of financial balances, authorizing transactions, transferring funds to and from transactors' accounts, notifying banks (or credit card issuers) of the individual transactions, and providing daily summaries. Since these transaction processing activities are integral to the production of finance and insurance services, establishments that principally provide a financial transaction processing service are classified in this sector, rather than in the data processing industry in the Information sector. Legal entities that hold portfolios of assets on behalf of others are significant and data on them are required for a variety of purposes. Thus, for NAICS, these funds, trusts, and other financial vehicles are the fifth subsector of the Finance and Insurance sector. These entities earn interest, dividends, and other property income, but have little or no employment and no revenue from the sale of services. Separate establishments and employees devoted to the management of funds are classified in Industry Group 5239, Other Financial Investment Activities.

This class includes activities auxiliary to financial service activities not elsewhere classified, such as: - financial transaction processing and settlement activities, including for credit card transactions - investment advisory services - activities of mortgage advisers and brokers This class excludes: - activities of insurance agents and brokers, see 66.22 - management of funds, see 66.30

This division includes the provision of services involved in or closely related to financial service activities, but not themselves providing financial services. The primary breakdown of this division is according to the type of financial transaction or funding served.

This class includes: - recording of commercial transactions from businesses or others - preparation or auditing of financial accounts - examination of accounts and certification of their accuracy - preparation of personal and business income tax returns - advisory activities and representation on behalf of clients before tax authorities This class excludes: - data-processing and tabulation activities, see 63.11 - management consultancy on accounting systems, budgetary control procedures, see 70.22 - bill collection, see 82.91

Establishments primarily engaged in the design, development, and production of prepackaged computer software. Important products of this industry include operating, utility, and applications programs. Establishments of this industry may also provide services such as preparation of software documentation for the user-installation of software for the user; and training the user in the use of the software. Establishments primarily engaged in providing preparation of computer software documentation and installation of software on a contract or fee basis are classified in Industry 7379, and those engaged in training users in the use of computer software are classified in Industry 8243. Establishments primarily engaged in buying and selling prepackaged computer software are classified in Trade; those providing custom computer programming services are classified in Industry 7371; and those developing custom computer integrated systems are classified in Industry 7373. Applications software, computer prepackaged Computer software publishers, prepackaged Games, computer software: prepackaged Operating systems software, computer: prepackaged Software, computer: prepackaged Utility software, computer: prepackaged

Establishments primarily engaged in the retail sale of products by television, catalog, and mail-order. These establishments do not ordinarily maintain stock for sale on the premises. Separate stores operated by catalog and mail-order houses for the retail sale of products on the premises are classified according to the product sold. Book clubs, not publishing Books, mail-order-retail Catalog (order taking) offices of mail-order houses-retail Cheese, mail-order-retail Coins, mail-order-retail Computer and peripheral equipment, mail-order-retail Computer software, mail-order-retail Food, mail-order-retail Fruit, mail-order-retail Jewelry, mail-order-retail Magazines, mail-order-retail Mail-order houses-retail (not including retail outlets) Novelty merchandise, mail-order-retail Order taking offices of mail-order houses-retail Record clubs, mail-order-retail Stamps mail-order-retail Television, mail-order (home shopping)-retail

This class includes activities auxiliary to financial service activities not elsewhere classified, such as: - financial transaction processing and settlement activities, including for credit card transactions - investment advisory services - activities of mortgage advisers and brokers This class excludes: - activities of insurance agents and brokers, see 66.22 - management of funds, see 66.30

This division includes the provision of services involved in or closely related to financial service activities, but not themselves providing financial services. The primary breakdown of this division is according to the type of financial transaction or funding served.

This class includes: - recording of commercial transactions from businesses or others - preparation or auditing of financial accounts - examination of accounts and certification of their accuracy - preparation of personal and business income tax returns - advisory activities and representation on behalf of clients before tax authorities This class excludes: - data-processing and tabulation activities, see 63.11 - management consultancy on accounting systems, budgetary control procedures, see 70.22 - bill collection, see 82.91

**Exclusions/References:** - Units mainly engaged in - (a) providing word processing and related document preparation activities are included in Class 7292 Document Preparation Services; - (b) providing on-site management and operation of a customer's data-processing facilities are included in Class 7000 Computer System Design and Related Services; - (c) gathering, tabulating and presenting marketing and opinion data are included in Class 6950 Market Research and Statistical Services; - (d) processing financial transactions such as credit card transaction are included in the appropriate classes of Division K Financial and Insurance Services; and - (e) providing payroll processing services are included in Class 7291 Office Administrative Services. **Primary Activities:** - Application hosting - Application service provision - Audio and visual media streaming service - Automated data processing service - Computer input preparation service - Computer time leasing or renting - Computer time sharing service - Data capture imaging service - Data entry service (electronic) - Data processing computer service - Disk and diskette conversion and recertification service - Electronic data processing service - Microfiche or microfilm recording and imaging service - Optical scanning service - Web hosting

**Exclusions/References:** - Units mainly engaged in - (a) investing money in financial assets such as shares, bonds, bills, etc, on own account are included in Class 6240 Financial Asset Investing; and - (b) providing investment management or advisory services, or arranging home loans for others on a commission or fee basis, are included in Class 6419 Other Auxiliary Finance and Investment Services. **Primary Activities:** - Commodity futures broking or dealing (on a commission or transaction fee basis) - Financial asset broking service (on a commission or transaction fee basis) - Stock broking or trading (on a commission or transaction fee basis) - Trading of mortgages operation (on a commission or transaction fee basis)

**Exclusions/References:** - Units mainly engaged in - (a) operating development, savings and trading banks are included in Class 6221 Banking; - (b) operating building societies are included in Class 6222 Building Society Operation; - (c) operating credit unions are included in Class 6223 Credit Union Operation; - (d) providing non-depository credit intermediation are included in Class 6230 Non-Depository Financing; - (e) providing financial market transaction broking services (e.g. stock broking) and related activities on behalf of others are included in Class 6411 Financial Asset Broking Services; and - (f) providing financial investment management or advisory services or other services in the field of finance or investment (except insurance or superannuation), are included in Class 6419 Other Auxiliary Finance and Investment Services. **Primary Activities:** - Bill of exchange discounting or financing (except by banks) - Commercial finance company operation - Depository financial intermediation n.e.c. - Merchant banking operation - Money market dealing

This class excludes: - reproduction of software, see 1820 - retail sale of non-customized software, see 4741

This class excludes: - reproduction of software, see 1820 - retail sale of non-customized software, see 4741

Enforce or ensure compliance with laws and regulations governing financial and securities institutions and financial and real estate transactions. May examine, verify, or authenticate records.

Enforce or ensure compliance with laws and regulations governing financial and securities institutions and financial and real estate transactions. May examine, verify, or authenticate records.

In a gambling establishment, conduct financial transactions for patrons. Accept patron's credit application and verify credit references to provide check-cashing authorization or to establish house credit accounts. May reconcile daily summaries of transactions to balance books. May sell gambling chips, tokens, or tickets to patrons, or to other workers for resale to patrons. May convert gambling chips, tokens, or tickets to currency upon patron's request. May use a cash register or computer to record transaction.

Accounting associate professionals maintain complete records of financial transactions of an undertaking and verify accuracy of documents and records relating to such transactions. Tasks include - (a) maintaining complete records of all financial transactions of an undertaking according to general bookkeeping principles, with guidance from accountants; (b) verifying accuracy of documents and records relating to payments, receipts and other financial transactions; (c) preparing financial statements and reports for specified periods; (d) applying knowledge of bookkeeping principles and practices in order to identify and solve problems arising in the course of their work; (e) using standard computer software packages to perform accounting and related calculations; (f) supervising the work of accounts and bookkeeping clerks. Example of the occupations classified here: - Accounting assistant - Bookkeeper Some related occupations classified elsewhere: - Accountant - 2411 - Actuarial assistant - 3314 - Bookkeeping clerk - 4311.

Business and administration associate professionals perform mostly technical tasks connected with the practical application of knowledge relating to financial accounting and transaction matters, mathematical calculations, human resource development, selling and buying financial instruments, specialized secretarial tasks, and enforcing or applying government rules. Also included are workers who provide business services such as customs clearance, conference planning, job placements, buying and selling real estate or bulk commodities, and serving as agents for performers such as athletes and artists. Competent performance in most occupations in this sub-major group requires skills at the third ISCO skill level. Tasks performed by workers in this sub-major group usually include recording and transmitting buy and sell orders for securities, stocks, bonds or other financial instruments and for foreign exchange for future or immediate delivery; submitting credit and loan applications to management with recommendations for approval or rejection; approving or rejecting applications within authorized limits ensuring that credit standards of the institution are respected; maintaining complete records of all financial transactions of an undertaking according to general bookkeeping principles, with guidance from accountants; assisting in planning and performing mathematical, statistical, actuarial, accounting and related calculations; selling and buying financial instruments. Occupations in this sub-major group are classified into the following minor groups: 331 Financial and Mathematical Associate Professionals 332 Sales and Purchasing Agents and Brokers 333 Business Services Agents 334 Administrative and Specialized Secretaries 335 Government Regulatory Associate Professionals.

Financial and mathematical associate professionals place a value on various items and property; maintain records of financial transactions; analyse loan application information and render a decision; buy and sell financial instruments; and perform mathematical and related calculations. Tasks performed usually include: recording and transmitting buy and sell orders for securities, stocks, bonds or other financial instruments and for foreign exchange for future or immediate delivery; submitting credit and loan applications to management with recommendations for approval or rejection; approving or rejecting applications within authorized limits ensuring that credit standards of the institution are respected; maintaining complete records of all financial transactions of an undertaking according to general bookkeeping principles, with guidance from accountants; assisting in planning and performing mathematical, statistical, actuarial, accounting and related calculations. Occupations in this minor group are classified into the following unit groups: 3311 Securities and Finance Dealers and Brokers 3312 Credit and Loans Officers 3313 Accounting Associate Professionals 3314 Statistical, Mathematical and Related Associate Professionals 3315 Valuers and Loss Assessors.

**Includes:** - published software used to assist in the development and/or authoring of computer programs, including software products that support the professional developer in the design, development, and implementation of a variety of software systems and solutions

**Includes:** - published software that is used to control, monitor, manage and communicate with operating systems, networks, network services, databases, storage and networked applications in an integrated and cooperative fashion across a network from a central location. This includes all network management software, server software, security and encryption software, middleware, etc.

**Includes:** - published software programmes that perform a specific function directly for the end user