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Financial services
- 1. Financial services Ram murti 16PBA041 BaddiUniversity of Emerging Science And Technology
- 2. Financial services The term‘Financial Services’ means “mobilizing and allocating savings.” Thus, it includes all activities involved in the transformation of savings into investment.
- 3. Financial services canbe defined as the products and services offered by institutions like banks of various kinds for the facilitation of various financial transactions and other related activities in the world of finance like loans, insurance, credit cards, investment opportunities and money management as well as providing information on the stock market and other issues like market trends.
- 4. Features of FinancialServices • Financial services are Intangible • Financial services are customer oriented • The production and delivery of a service are simultaneous functions therefor are inseparable • They are perishable in nature and cannot be stored • They are proactive in nature and help to visualize the expectations of the market • They acts as link between the investor and borrower • They aid in distribution of risks.
- 5. Components of FinancialServices
- 6. Types of FinancialServices • Capital market Services – It consists of consist of term lending institutions which mainly provide long term funds. • Money market Services – It consists of commercial banks, financial institutions, co-operative banks which providing short term funds agencies • Retail Service – Services provided to individuals for direct consumption. • Wholesale Service – Services provided to corporate institutions which may be directly or indirectly converted into retail services.
- 7. Types of financialActivity Fund Based Services Modern Activities Fee based services
- 8. Fund based Activities •Underwriting or investment in shares, debentures, bonds, etc. of new issues • Dealing in secondary market activities • Participating in money market instruments eg. Discounting bills, treasury bills, certificate of deposit etc. • Involving in equipment leasing, hire purchase, venture capitals • Dealing in foreign exchange activities
- 9. Fee based Activities •Managing the capital issue in accordance with SEBI guidelines enabling promoters to market their issue • Making arrangements for placement of capital and debt instruments with investment institutions • Arrangement of funds from financial institutions for clients project cost or working capital • Assisting in getting all Government and other clearances
- 10. Modern Activities • Renderingproject advisory services right from the preparation of the project report till raising of funds • Guiding Corporate Customers in capital restructuring • Acting as trustees to the debenture holders • Recommending changes in managing structure and style • Managing the portfolio of large public sector corporations • Advising clients • Promoting credit rating agencies
- 11. Importance of FinancialServices • Vibrant Capital Market. • Expands activities of financial markets. • Benefits of Government. • Economic Development. • Economic Growth. • Maximizes Returns. • Minimizes Risks. • Promotes Savings. • Promotes Investments. • Balanced Regional Development.
- 12. Utility or Uses •Financial Services form a major part of the Gross Domestic Product • It ensures there is no shortage of funds for productive ventures • It helps in making good financial decisions • It aids in allocation of risk and helps to minimize risk • It aids in financial deepening and broadening • It generates employment
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