Importance In the modern financial market, investors look for new approaches to preserving their assets and adding value to them. Investors do not only seek for securing their capital, but also choose new directions for their investment. They often opt for investing in pieces of hoarding, i.e. collectibles. Art investments need the industry of financial institutions and banks, which will serve the market. Modern financial institutions and banks are capable of offering to their clients a necessary spectrum of services relating to the art market. Objectives The research pursues formulating recommendations on the way to improve activities of financial institutions and banks investing their clients' money in art. I consider principal institutions that operate in the art market and deliver financial services, and the specifics of their operations. The research also analyzes the domestic and foreign practices of financial institutions in the art market, displays strengths and weaknesses of their work, and describes the main services banks render in the art market. Methods The methodological framework of the research comprises analysis and synthesis, which effectuate the research into the Russian and foreign art market, activities of financial institutions and banks and the services they render for their clients. Results As the research shows, clients of financial institutions and banks get more and more interested in investing their free money in art. This trend is common for the foreign and Russian markets. I note the need to create institutional conditions for developing the art market, where financial market and banks are principal parties to the investment process, allocating their funds, acting as intermediaries on behalf of their clients acquiring investment assets represented with pieces of art. Conclusions and Relevance I conclude it is necessary to develop both financial institutions and banks servicing the art market, and a spectrum of services offered to clients in relation to art investment. For this, the art market should be developed and advanced. As the main challenges I should mention expanding pieces of art offered; making the market more transparent; adopting new strategies for auction houses and galleries; modifying the institutional environment, which should have institutions driving the formation and development of the art market; launching activities of organizations and associations that ensure the transparency of the art market.
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