-INTRODUCTION -FINANCIAL SERVICE INDUSTRIES ---CREDIT UNIONS ---BANKS ---CREDIT CARD COMPANIES ---INSURANCE COMPANIES ---ACCOUNTANCY COMPANIES ---CONSUMER FINANCE COMPANIES ---STOCK BROKERAGES ---INVESTMENT FUNDS ---GOVERNMENT SPONSORED ENTERPRISES -OTHER FINANCIAL SERVICES ---FOREIGN EXCHANGE ---VENTURE CAPITAL ---HEDGE FUNDS ---WEALTH MANAGEMENT

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WELCOME

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FINANCIAL SERVICE
INDUSTRIES
FINANCIAL MARKETS AND SERVICES

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INTRODUCTION
• Financial services can be defined as activities , benefits and satisfactions , connected with the sale of money ,
that offer to users and customers , financial related value.
• Financial service is part of financial system that provides different types of finance through various credit instruments,
financial products and services.
• Financial instruments - cheques, bills, promissory notes, debt instruments, letter of credit, etc.
• Financial products - different types of mutual funds. extending various types of investment opportunities & also
products such as credit cards, debit cards, etc.
• Financial services - leasing, factoring, hire purchase finance etc., through which various types of assets can be
acquired either for ownership or on lease. There are different types of leases as well as factoring too.
• Financial services enable the user to obtain any asset on credit, according to his convenience and at a
reasonable interest rate.

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FINANCIAL SERVICE INDUSTRIES
• The financial services industry encompasses many types of businesses involved in managing
money, and it plays a vital intermediary role in the world's economy.
• The industry as a whole is vast and includes companies engaged in activities such as investing,
lending, insuring, securities trading and issuance, asset management, advising, accounting,
foreign exchange, and more.
• Because of its large and diverse landscape, the financial services industry offers a wide range of
career options.
• Financial services companies are present in all economically developed geographic locations
and tend to cluster in local, national, regional and international financial centres such
as London, New York City, and Tokyo.

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• Financial services are the economic services provided by the finance industry, which
encompasses a broad range of businesses that manage money, including;
• Credit unions
• Banks
• Credit-card companies
• Insurance companies
• Accountancy companies

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• Consumer-finance companies
• Stock brokerages
• Investment funds
• Individual managers & some
• Government-sponsored enterprises

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1.CREDIT UNIONS
• A credit union is a type of financial cooperative that provides traditional banking
services.
• Ranging in size from small, volunteer-only operations to large entities with thousands of
participants spanning the country, credit unions can be formed by large corporations,
organizations, and other entities for their employees and members.
• Credit institutions are created, owned, and operated by their participants. As such, they
are not-for-profit enterprises that enjoy tax-exempt status.

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• Credit unions follow a basic business model: Members pool their money - technically,
they are buying shares in the cooperative - in order to be able to provide loans, demand
deposit accounts, and other financial products and services to each other.
• Any income generated is used to fund projects and services that will benefit the
community and interests of its members.

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2. BANKS
• A bank is a financial institution licensed to receive deposits and make loans.
• Banks may also provide financial services, such as wealth management, currency
exchange, and safe deposit boxes.
• There are two types of banks:
• Commercial/retail banks
• Investment banks.
• In most countries, banks are regulated by the national government or central bank.

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• Commercial banks,
• are typically concerned with managing withdrawals and receiving deposits as well as supplying
short-term loans to individuals and small businesses.
• Consumers primarily use these banks for basic checking and savings accounts, certificates of
deposit (CDs) and home mortgages.
• Investment banks,
• focus on providing corporate clients with services such as underwriting and assisting with merger
and acquisition (M&A) activity.

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3. CREDIT CARD COMPANIES
• Credit card companies are the banks and credit unions that issue credit cards to consumers and small
business owners.
• They also service cardholders’ accounts by billing for purchases, accepting payments, distributing rewards
and more.
• Examples of major credit card companies include Bank of America, Barclays, Citibank, Chase, Capital
One and Wells Fargo.
• They dictate where credit cards can be used, facilitate payment processing at the point of sale and
administer secondary credit card benefits, such as rental car insurance, travel insurance and extended
warranties.
• The four major card networks are Visa, MasterCard, American Express and Discover.

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• Credit cards are usually issued by banks and credit unions.
• They give these financial institutions a fairly steady source of revenue from
account fees, interest charges and payment processing fees charged to
merchants.
• The transactional nature of credit cards also gives issuers a chance to establish
relationships with consumers. And that allows them to upsell cardholders to
other products and services.

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4. INSURANCE COMPANIES
• A financial institution that provides a range of insurance policies to protect
individuals and businesses against the risk of financial losses in return for
regular payments of premiums.
• An insurance company operates by pooling risks amongst a large number of
policyholders.
• A business that provides coverage, in the form of compensation resulting from
loss, damages, injury, treatment or hardship in exchange for premium payments.

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• The company calculates the risk of occurrence then determines the cost to
replace (pay for) the loss to determine the premium amount.
• Offers insurance policies to the public, either by selling directly to an individual
or through another source such as an employee's benefit plan.
• It is usually comprised of multiple insurance agents & it can specialize in one
type of insurance, such as life insurance, health insurance, or auto insurance, or
offer multiple types of insurance

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5. ACCOUNTANCY COMPANIES
• Accounting firms offer a myriad of services that help business owners stay
financially organized, tax compliant and that help prepare for business growth.
• Business owners shouldn't look at an accounting firm merely as an outsourcing
cost for bookkeeping but as an integral business partner.
• Not every accounting firm offers every type of service, and business owners
should interview various firms to determine which is the best fit for the
company's specific business needs.

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• Some accounting firms specialize in niche services such as tax strategy, most
will offer bookkeeping and payroll services, tax preparation and business
valuation services.
• Services by accounting firms includes:
• Tax planning and preparation
• Operational book keeping and payroll
• Business development and valuation

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6. CONSUMER FINANCE COMPANIES
• A financial institution that specializes in providing loans directly to consumers who are unable to
secure bank loans.
• A consumer finance company generally charges a higher interest rates than a bank.
• The difference between banks and these specialist lenders are the source of funding, which is
the money the bank or specialist lenders provide to people who borrow money.
• One broad definition of consumer finance is this: The financing of goods and services for
consumer.

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• The products of consumer finance companies include;
• Uncollateralized personal loan, such as Credit Card or Cash personal loans
• Payday loans
• Ownership loans is a type of loan where a Financial Service company finance the purchase of an
item: car financing, property financing.
(You don't own a car, you want to own it, the bank help you
• Refinancing loans is a loan type where a Financial Service company provide cash with an item
being pledge as collateral: car refinancing, property refinancing.
(You already own a car, you want cash and you're willing to put the car as collateral)

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• Consumer finance companies are those that help consumer finance a purchase
or receive loans for various purposes. Example of such companies are banks
and specialist lenders.
• Some example of consumer finance company:
- CapitalOne
- Santander Consumer USA

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7. STOCK BROKERAGES
• Brokerage firms are financial institutions that help you buy and sell securities.
• They act as the middle man between the buyer and the seller.
• Depending on the brokerage firm type you choose, you can either make your
buys and sales via telephone, internet, or smartphone.
• Brokerage firms generally charge per buy or sell order with assisted telephone
orders being more expensive.

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• A full-service brokerage firm is a brokerage firm that provides a range of
financial services in addition to allowing you to buy and sell securities.
• These firms can provide customers with financial planning services as well as
consulting services.
• They can also provide trust services and wealth management services.

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8. INVESTMENT FUNDS
• An investment fund is a supply of capital belonging to numerous investors used to collectively purchase
securities while each investor retains ownership and control of his own shares.
• An investment fund provides a broader selection of investment opportunities, greater management
expertise and lower investment fees than investors might be able to obtain on their own.
• Types of investment funds include
• Mutual funds
• Exchange-traded funds
• Money market funds
• Hedge funds.

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• With investment funds, individual investors do not make decisions about how a
fund's assets should be invested.
• They simply choose a fund based on its goals, risk, fees and other factors.
• A fund manager oversees the fund and decides which securities it should hold,
in what quantities and when the securities should be bought and sold.

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9. GOVERNMENT SPONSORED
ENTERPRISE
• A government-sponsored enterprise is a quasi-governmental entity
established to enhance the flow of credit to specific sectors of the economy.
• Government-sponsored enterprises do not lend money to the public directly.
• Instead, they guarantee third-party loans and purchase loans in the secondary
market, thereby providing money to lenders and financial institutions.
• GSEs also issue short- and long-term bonds (agency bonds) that carry the
implicit backing of the U.S. government.

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OTHER FINANCIAL SERVICES
• Foreign Exchange
• Venture Capital
• Hedge Funds
• Wealth Management

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1. FOREIGN EXCHANGE
• Foreign exchange is the conversion of one currency into another by individuals
or corporations for completing transnational deals.
• It is the biggest segment of the financial market, and its daily turnover runs into
trillions of dollars.

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2. VENTURE CAPITAL
• Venture capital is the initial seed money provided by an investor to the holder of
a new, potentially financially rewarding business idea for a share in the returns
of the start-up business.
• Venture capital companies make investments from a long-term perspective.
• Venture capital funds are a big boon for start-ups that do not have access to
financial markets.

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3. WEALTH MANGEMENT
• Wealth management (or asset management) is a strategy to help the affluent
maximise returns from their investments by alerting them to investment
opportunities and helping them choose appropriate financial products

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CONCLUSION
• Financial services are activities , benefits and satisfactions , connected with the sale of money , that offer to
users and customers , financial related value.
• A financial industry as a whole is vast and includes companies engaged in activities such as investing,
lending, insuring, securities trading and issuance, asset management, advising, accounting, foreign
exchange, and more.
• Financial services are the economic services provided by the finance industry, which encompasses a broad
range of businesses that manage money, including credit unions, banks, credit-card companies, insurance
companies, accountancy companies, consumer-finance companies, stock brokerages, investment funds,
individual managers and some government-sponsored enterprises.
• Other financial services include Foreign Exchange, Venture Capital, Hedge Funds and Wealth
Management.

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REFERNCES
• https://en.wikipedia.org/wiki/Financial_services
• https://www.ibef.org/industry/financial-services-india.aspx
• https://www.michaelpage.ca/advice/career-advice/growing-your-career/11-types-financial-services-and-institutions

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THANK YOU !