The document discusses financial services. It defines financial services as mobilizing and allocating savings through various financial activities. It notes that financial services are customer-oriented, intangible, require simultaneous performance by suppliers and consumers, are people-intensive due to the dominance of human elements, and are perishable since services cannot be inventoried. It outlines traditional financial activities like fund-based and non-fund based services as well as modern financial engineering activities.

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.
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2.  Customer oriented:Financial service industry
is also a customer oriented one.it 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
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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.
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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.
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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.
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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.
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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
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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.
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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.
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