Financial services


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Financial services

  1. 1. All types of activities which are of a financial nature could be brought under the term financial services. The term financial services refers to mobilizing and allocating savings.
  2. 2.  Customer oriented:Financial service industry is also a customer oriented calls for designing innovative financial products suitable to varied risk return requirements of customers.timely delivery of services is required.  Intangibility:Financial services are intangible and therefore they cannot be standardised or reproduced in the same form,need arises to track the integrity,reputation,good corporate image etc
  3. 3.  Simultaneous performance: Both suppliers and consumers should have good rapport clear-cut perception and effective communication.  Dominance of human element: financial services are dominated by human element and thus they are people intensive.  Perishability:financial services are immediately consumed and hence inventories cannot be created.
  4. 4.  Traditional activities.  Modern activities. traditional activities: traditionally the financial intermediaries have been rendering a wide range of services encompassing both capital and money market activities. i) Fund based activities. ii) Non fund based activities.
  5. 5. Fund based: i) underwriting of shares,debentures,bonds etc. ii) Dealing in secondary market activities. iii) participating in money market instruments. iv) Involving in equipment leasing,hire purchase,venture capital,seed capital etc. v) Dealing in foreign exchange market activities.
  6. 6.  Non fund based services: i) it is also called fee based activity. ii)People today are not satisfied with mere provision of finance. iii) wide services are provided under this head: a) managing the capital issues. b) making arrangements for the placement of capital and debt instruments with investment. c) arrangement of funds from financial institutions for the clients project or working capital. d) assisting in the process of getting all government and other clearances.
  7. 7.  Rendering project advisory services right from the preparation of the project.  Planning for mergers and acquisitions.  Guiding corporate customers in capital restructuring.  Acting as trustees to the debenture-holders.  Recomending suitable changes in the management structure.  Structuring the joint ventures by identifying partners
  8. 8.  Rehabilitating and reconstructing sick companies.  Hedging of risks due to exchange rate risk,interest rate risk,economic risk and political risk by using swap.  Managing portfolio of large public sector companies.  Undertaking risk mgt services.  Advising clients for best sources of funds.  Other services: clearing services registration and transfers safe custody of securities. collection of income on securities.
  9. 9. Financial Engineering is the design the development and the implementation of innovative financial instruments and processes and the formulation of creative solutions to problems in finance.