FINANCIAL SERVICES

1. FINANCIAL SERVICES
Madhuri Chauhan
MBA 4th Sem.
Baddi University of Emerging Sciences & Technology

2. Financial Services
Financial services mean all the activities involved in
transformation of saving into investment.
Features :-
 Customer specific
 Intangible
 Concomitant (simultaneous usage and production)
 Tendency to Perish
 People based services
 Market dynamics (Socio economic factors)

3. Constitution of Financial System
Financial
System
Financial
Markets
Financial
Institutions
Financial
Instruments
Financial
Services

4. Financial Markets:It is a place, Where financial Products are created and
transferred.
FINANCIAL MARKETS
Organized
Primary
Capital
market
Unorganized
Secondary
Money
Market
Forex
Market

5. Financial Institutions: It link the savers to the Investors
through conversion of instruments issued by them into Indirect Securities
Financial Institutions are engaged into different
types of transformation of funds
 Liabilities Transformation: Converting Liabilities into assets
by banks
 Size Transformation: collecting smalls money and further
pulling bulk funds in market
 Risk Transformation: Act of Diversification
 Maturity Transformation: Act of providing Liquidity
Preference

6. Financial Institutions
Intermediary
Banking
Commercial
Banks
Cooperative
banks
Non Banking
NBFC
Mutual
Funds
Insurance
Companies
Non
Intermediary
Pure Lending
institutes
IFCI,
NABARD

7.  COMMERCIAL BANKS:
 27- Public sector banks
 22- Rural regional banks
 13- private sector banks

8. 1. Liquidity
2. Marketability
3. Maturity Period
4. Interest
5. Tax
6. Dividends
Functions of Financial Instruments

9. Financial Services: It is Mobilization of savings and
their transformation into Investment
 Merchant Banking
 Credit ratings
 Factoring
 Underwriting
 Venture Capital
 Leasing/ Hire Purchase
 Stock broking
 Advisory
 Depositories
 Mutual Funds
 Insurance
 Credit agencies
 Housing Finance
 Banking Guarantees

10. Functions of financial services
 Facilitating transactions (exchange of goods and
services) in the economy.
 Mobilizing savings .
 Allocating capital funds (notably to finance productive
investment).
 Monitoring managers (so that the funds allocated will
be spent as envisaged).
 Transforming risk (reducing it through aggregation
and enabling it to be carried by those more willing to
bear it).

11. Types of Financial Services
Fund based services
 Underwriting or investment in shares, debentures, bonds,
etc. of new issues (primary market activities).
 Dealing in secondary market activities.
 Participating in money market instruments like
commercial
 Papers, certificate of deposits, treasury bills, discounting of
bills etc.
 Involving in equipment leasing, hire purchase, venture
capital, seed capital,
 Dealing in foreign exchange market activities. Non fund
based activities

12. Fee based services
 Managing the capital issue — i.e. management of pre-
issue and post-issue activities relating to the capital
issue in accordance with the SEBI guidelines and thus
enabling the promoters to market their issue.
 Making arrangements for the placement of capital and
debt instruments with investment institutions.
 Arrangement of funds from financial institutions for
the clients’ project cost or his working capital
requirements.
 Assisting in the process of getting all Government and
other clearances.

13. Thank You