Financial Landlord

A Financial Landlord lets others use cash (or other financial assets) under certain (often time limited) conditions. There are two major subtypes of this business model:

• Lenders provide cash that their customers can use for a limited time in return for a fee (usually called “interest”). Examples: Bank of America, Fannie Mae.
• Insurers provide their customers financial reserves that the customers can use only if they experience losses. The fee for this service is usually called a “premium.” Examples: Aetna, Chubb