Provides detail about the topic such as its meaning, features, component, function, types of financial activities.

1. FINANCIAL SERVICES
Presented By : Poonam Thakur
MBA 4th Sem.
Baddi University of Emerging
sciences & Technology

2. Financial Services
Meaning :- It means mobilizing & allocating savings. All activities involved
in the transformation of saving into investment.
Features :-
 Customer specific
 Intangible
 Concomitant (simultaneous usage and production)
 Tendency to Perish
 People based services
 Market dynamics (Socio economic factors)

3. Financial Components
Financial Institution Financial Instrument
Financial Market Financial Services
Component

4.  Financial institutions :- It provide financial services for members
and clients. Financial institution divided into two types:
 Banking institution
 Non-Banking institution
 Banking Institutions :- Banks are financial intermediaries that
lend money to borrowers to generate revenue. Banks includes:
Commercial Bank:
Public Bank
Private Bank
Foreign Bank
Cooperative Banks :
Regional Bank
Rural Bank

5.  Non-bank financial institutions: - Non-bank financial
institutions facilitate financial services like investment, risk pooling,
and market brokering. They generally do not have full banking licenses or
are not supervised by a bank regulation agency. Non-bank financial
institutions include :
Finance and loan companies
Insurance companies
Mutual funds
Commodity traders

6.  Financial Market :-Financial markets are markets in
which securities, commodities, and fungible items are traded at prices
representing supply and demand. The term "market" typically means the
institution of aggregate exchanges of possible buyers and sellers of such
items. It includes :
Money Market
Capital Market
 Financial Services :- They are offered by a large no. of businesses that
encompass the finance industry. These include Credit union , banks , credit
card companies , insurance companies , stock brokerages & investment
funds. Financial services divided into two types :
 Fund based
 Fee based

7. Types of Financial Activities
 Fund based activity
 Fee based activity
Fund based activity :-
 Underwriting or investment in shares, debentures, bonds, etc. of new
issues (primary market activities).
 Dealing in secondary market activities.
 Participating in money market instruments like commercial
 Papers, certificate of deposits, treasury bills, discounting of bills etc.
 Involving in equipment leasing, hire purchase, venture capital, seed
capital,
 Dealing in foreign exchange market activities. Non fund based
activities

8. Fee based activity :-
 Managing the capital issue — i.e. management of pre-issue and post-issue
activities relating to the capital issue in accordance with the SEBI guidelines
and thus enabling the promoters to market their issue.
 Making arrangements for the placement of capital and debt instruments with
investment institutions.
 Arrangement of funds from financial institutions for the clients’ project cost
or his working capital requirements.
 Assisting in the process of getting all Government and other clearances.

9. Functions of Financial Services
 Facilitating transactions (exchange of goods and services) in the economy.
 Mobilizing savings .
 Allocating capital funds (notably to finance productive investment).
 Monitoring managers (so that the funds allocated will be spent as
envisaged).
 Transforming risk (reducing it through aggregation and enabling it to be
carried by those more willing to bear it).

10. THANK YOU