The document lists major financial services marketing companies in India and discusses the evolution and functions of money. It then covers key topics related to financial services including intermediation, risk management, types of financial products and services, and characteristics of the financial services industry such as intangibility and lack of product identity. The document discusses trends impacting financial services like changing customer behavior, deregulation, and technological innovation. It concludes by mentioning the Department of Financial Services in India and financial inclusion initiatives.

1. Financial Services Marketing (303)

2.  SBI Capital Markets Limited
 Bajaj Capital Limited
 DSP Merrill Lynch Limited
 Birla Global Finance Limited
 Housing Development Finance Corporation
 PNB Housing Finance Limited
 ICICI Group
 LIC Finance Limited
 L & T Finance Limited
 Karvy Group
Mrs. Charu Rastogi, Asst. Proff.

3.  Money is the root of all progress
 For thousands of years, metals such as gold,
silver and bronze served as money because they
were available, affordable, durable, fungible
(substitutable), portable and reliable
 But shortages of precious metals created
problems for the economy leading to
development of paper money and electronic
money
 Money is essentially a matter of belief, faith and
trust
 Money is a matter of functions four; a medium, a
measure, a standard, a store
Mrs. Charu Rastogi, Asst. Proff.

4.  Intermediation
◦ Individuals with money to save need to find those
who need to borrow, and vice versa. Financial
services do the job lending and collecting payment
more easily, cost effectively and expertly
 Risk management
◦ Without financial services people will focus on
saving to cover risk that they might not buy many
goods and services
 Financial services help put money to
productive use
Mrs. Charu Rastogi, Asst. Proff.

5.  A person provides a financial service if they
◦ provide financial product advice
 to influence a person in making a decision in relation to a particular
financial product
◦ deal in a financial product
 acquiring/issuing/varying/disposing a financial product
 underwriting the securities or interests
◦ make a market for a financial product
 through a facility, at a place or otherwise, the person regularly states
the prices at which they propose to acquire or dispose of financial
products on their own behalf
◦ provide a custodial or depository service
 a financial product, or a beneficial interest in a financial product, is held
by the provider in trust for the client
Mrs. Charu Rastogi, Asst. Proff.

6.  A financial product is a facility (arrangement or intangible property)
through which, or through the acquisition of which, a person
◦ makes a financial investment
 the investor gives money to another person and the person uses the contribution
to generate a financial return, or other benefit, for the investor
 the investor has no day-to-day control over the use of the contribution to
generate the return or benefit
 Eg: a person paying money to a company for the issue of shares (the company
uses the money to generate dividends for the person and the person, as a
shareholder, does not have control over the day-to-day affairs of the company)
◦ manages financial risk
 manage, avoid or limit the financial consequences to them of particular
circumstances happening
 Eg. taking out insurance and hedging a liability by acquiring a futures contract or
entering into a currency swap
◦ makes non-cash payments
 by ways other than making physical delivery of a domestic or foreign currency in
the form of notes / coins
 Eg: facility for direct debit of a deposit account, a facility for the use of cheques
Mrs. Charu Rastogi, Asst. Proff.

7.  Financial services are economic services provided by
the finance industry which comprises of
◦ Deposit-taking Firms
 Commercial banks
 Credit unions
 Finance companies
 Property and casualty insurance companies
 Pension funds
 Investment companies
 Mutual Funds
◦ Professional asset management companies
◦ Institutional investors
◦ Securities Firms
 Investment banks
 Brokers and dealers
 Mortgage banks
Mrs. Charu Rastogi, Asst. Proff.

8. Service /
Banking & Credit Insurance Securities and Brokerage
Product Market
Current account
Retail deposits
Equities: Broking
Travelers cheques Life
Personal Unit trusts
Consumer finance Non-life
Pension funds
Credit cards
House mortgages
Loan guarantees
Exposure credit Corporate finance
Non-life
Leasing Securities market
Exporters’ liability
Corporate Venture capital Fund management
Insurance broking
Business loans Corporate advisory
Reinsurance
International lending services, etc.
Foreign currency deposits
Mrs. Charu Rastogi, Asst. Proff.

9.  Intangible; cannot be visually communicated in
advertisements
 Inseparability; of prodn and distn – direct sale
 Lack of special identity; as products are similar,
emphasis is on package (branch, location, staff,
promotion) rather than product
 Heterogeneous; dependent on human factor,
technology, same person/ATM may render service
differently each time
 Labour intensive
 Fluctuation in demand as per economic activity
 Information based; relatively unexciting nature makes
attracting consumer attention and inspiring consumer
desire difficult.
Mrs. Charu Rastogi, Asst. Proff.

10.  Changing customer behaviour; longer life spans,
increasing urbanization, increased home
ownership, higher proportion of women in
workforce, better living standards, etc.
 Deregulation and government intervention; to
protect interests of consumers and to facilitate
more competitive and efficient industry
 Intense competition
 Technological innovation; new products, new
payment systems, new forms of distribution and
delivery, enhanced MIS
 Client relationship and quality; aim is to establish
long term, multiple service relationship
Mrs. Charu Rastogi, Asst. Proff.

11.  Department of Financial Services, Ministry of
Finance, GOI
 Visit http://financialservices.gov.in/
 What do they do?
 What is financial inclusion?
 What are some of the new initiatives being
taken?
Mrs. Charu Rastogi, Asst. Proff.