FINANCIAL

SERVICES

Introduction
Financial services refer to services provided
by the finance industry. The finance industry
encompasses a broad range of organizations
that deal with the management of money .
Among these organizations are banks,
insurance companies, consumer finance
companies , stock brokerages ,investment
funds etc

Meaning of Financial
Services
All types of activities which are of a financial

nature.
In broad sense it means mobilising and
allocating savings
Savings
Investment
It provides different types of finance through
various credit instruments, financial products
& services

Financial Services
The products and services offered by
institutions like banks of various kinds for the
facilitation of various financial transactions
and other related activities in the world of
finance like loans, insurance, credit cards,
investment
opportunities
and
money
management as well as providing information
on the stock market and other issues like
market trends.

Financial Services
A person provides a financial service if they
Provide financial product advice
Deal in a financial product
Provide a custodial or depository services

SCOPE OF FINANCIAL
SERVICES
Financial Services
Fund Based Activities
Fund Based Activities

Non

Contd..
Fund Based Activities
Involves provision of funds against asset, bank
deposit etc.
It includesUnderwriting shares of new issue.
Leasing
Hire Purchase
Housing Finance
Bill Discounting
Venture Capital

Contd..
Non Fund Based/Fee Based Activities:Fee Based activities does not involve much risk . But it

requires a lot of expertise on the part of a financial

company to offer such fee based services.
A wide variety of services, are being provided under this
head. This includesManaging the capital issues
Arrangement of funds from financial institutions for the
clients project cost or his working capital requirements
Credit Rating
M& A , capital restructuring
Portfolio Management

Features of Financial
Services
Customer Specific
Intangibility
Tendency to Perish
Market Dynamics

Functions of Financial
Services
Facilitating Transactions(exchange of goods

and services ) in the economy.

Mobilizing Savings
Transforming Risk

Need For Financial

Services
Intermediation
Risk Management
Financial services help put money to

productive use.

Importance of Financial Services

It serves as the bridge that people need to

take better control of their finances and make

better investments.
The financial services offered by a financial
planner or a bank institution can help people
manage their money much better.
It offer clients the opportunity to understand
their goals and better plan for them.

Importance of Financial Services

Promoting investment
Promoting savings
Minimizing the risk
Maximizing the returns
Economic growth
Benefit to Govt.
Expands activities of financial institutions
Promotion of domestic & foreign trade

Causes For Financial

Innovation

New Financial Products and

Services

Innovative Financial Instruments

Challenges Facing The Financial

Services Sector