A more thorough explanation:

Definition: NBFI stands for Nonbank Financial Institution. It refers to a type of financial institution that is not a bank but provides financial services to people. One example of an NBFI is a Money Service Business (MSB). MSBs are nonbank entities that allow people to make payments or obtain cash in exchange for payment instruments. They do not accept deposits or make loans. Examples of MSBs include money transmitters, payment instrument sellers, stored-value providers, check cashers, and currency exchangers.

Example: A person who wants to send money to their family in another country can use a money transmitter, which is an MSB. The money transmitter will take the person's payment and send it to the recipient in the other country. Another example is a check casher, which allows people to cash their checks without having to go to a bank. These examples illustrate how MSBs provide financial services to people without being a bank.