Amity School of Business

Financial Services

Concept
Amity School of Business

Services offered by financial companies. OR Services provided by Financial Industry.

Asset management companies include leasing companies, mutual funds, merchant bankers, portfolio managers. Liability management companies comprises of bill discounting and acceptance houses.
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Financial Services Modernization Act, 1999

Amity School of Business

A law that works to partially deregulate the financial industry.

The Financial Services Modernization Act of 1999 allows companies working in the financial sector to integrate their operations and invest in each others businesses and consolidate.

This includes businesses such as insurance companies, brokerage firms, investment dealers, commercial banks etc

Problems

Amity School of Business

Lack of expertise Dearth of personnel with expert knowledge. For instance: PSU has salary restrictions and private cannot match with foreign players. Inadequate accommodation Inadequate accommodation at preferred central location. Inadequate technology Indian firms lack adequate and time tested technology. For instance: relative tardy growth of computer telecommunication technology.

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Problems

Amity School of Business

Inadequate quality service Key to survival: Quality service and products at right prices, at right place and at right time. Inappropriate technology usage. Captive organizations Parent Subsidiary setup.

Restricted scope of operations For instance, the scope of venture capital in India is restricted to providing finance for start up, high tech projects and converting R&D to commercial production . But shy to enter service sector.

Problems

Amity School of Business

Limited innovations Limited innovations in the realm of financial services products. Lack of sound institutional mechanism Required a broad based and strong financial system. Requires wide range of financial services. Other problems: Lack of core competence and insufficient competitive advantage. Lack of reliable benchmarking. Indulgence by certain firms into unfair practices.
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Forces influencing Financial Services

Amity School of Business

Employment & Unemployment

Inflation & Deflation Economic growth Enhanced Competition

Trade Cycles Exchange rate & Balance of payments Global Portfolio preferences
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Stagflation

Technological Changes

Amity School of Business

Introduction to marketing of Financial Services

Difference between marketing of products and Services Amity School of Business

Products 1. 2. 3. Tangible Homogeneous Services Intangible Heterogeneous

Product and distribution separated Production, distribution and from consumption consumption are simultaneous process A thing A activity

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Core value produced in factory

Core value produced in buyer-seller interaction

Customers do not participate in the Customers participate in production production process Can be kept in stock Transfer of ownership Cannot be kept in stock No transfer of ownership