What type of banks primarily perform money transmission services?

Commercial banks primarily perform money transmission services. These institutions are designed to handle a wide range of financial transactions that facilitate the transfer of money, including deposits, withdrawals, and payments. They act as intermediaries that provide the infrastructure and services needed for individuals and businesses to send and receive funds securely.

Commercial banks typically offer services such as wire transfers, electronic funds transfers, and money orders, which are essential components of money transmission. They also provide checking and savings accounts, allowing customers to manage their money efficiently and transfer it easily when needed.

Other types of banks, such as investment banks and secondary banks, mainly focus on specific financial services like underwriting and market-making or catering to niche markets, respectively. Clearing banks play a role in settling transactions between banks but do not directly engage in offering money transmission services to the general public. Thus, commercial banks are the primary institutions associated with these essential financial activities.