Financial services refer to services provided by banks and other financial institutions, including mobilizing and allocating savings, providing loans, insurance, investment products, and more. Some key types of financial institutions discussed are commercial banks, cooperative banks, and non-banking financial institutions. Financial markets allow for short-term lending and capital raising. Financial instruments can be primary, secondary, short-term, long-term or medium-term. Financial services are classified as fund-based, involving direct investment of funds, or fee-based, where institutions earn fees through specialized services.

1. Management Of
Financial Services
Presented By: Priya Singh (MBA 4THsem)
Baddi University Of Emerging Science And
Technologies

2. Meaning of MFS
Financial services refer to services provided by the banks
and financial institutions in a financial system. In general, all
types of activities which are of financial nature may be
regarded as financial services.
 In a broad sense, the term financial services means
mobilization and allocation of savings. Thus, it includes
all activities involved in the transformation of savings
into investment.

3. Some of the examples of financial
services
• Mutual Fund management.
• Leasing, credit card services, factoring, portfolio
management and
financial consultancy services.
• Underwriting, discounting and rediscounting of bills.
• Acceptances, brokerage and stock holding.
• Depository services, housing finance and book building
• Hire purchases and installment credit.
• Insurance.
• Financial and performance guarantees.
• Loan syndicating and credit rating.

4. Characteristics of MFS
Customer-centric
Intangibility
Perishable in nature
Financial service industry is an information based
industry
Concomitant
Dominance of human element

5. Financial Components
Financial Institution
Financial Market
Financial Instrument
Financial Services

6. Meaning of Financial Institution
A financial institution (FI) is a company engaged in the
business of dealing with monetary transactions, such as
deposits, loans, investments and currency exchange.

7. Types of Financial Institution
Banking Institution
Commercial Banks
1)Public Bank
2)Private Bank
3)Foreign Bank
Co-operative Bank
1)Regional Bank
2)Rural Bank
Non Banking Institution
Organized Institution
Unorganized Institution

8. Meaning
A) Banking Institution :A bank is a financial institution licensed
to receive deposits and make loans.
1) Commercial Bank: A commercial bank is an institution that
provides services such as accepting deposits, providing business
loans, and offering basic investment products.
• Private Bank : Private banks are the banks owned by either
the individual or a general partner(s) with limited partner(s).
Private banks are not . In any such case, the creditors can look
to both the "entirety of the bank's assets" as well as the
entirety of the sole-proprietor's/general-partners' assets.

9. • Public Bank : A public bank is a bank, a financial
institution, in which a state or public actors are the
owners. It is a company under state control.
• Foreign Bank: foreign bank that is obligated to follow the
regulations of both the home and host countries.
Because the foreign branch banks' loan limits are based
on the parent bank's capital, foreign banks can provide
more loans than subsidiary banks.

10. 2) Co-Operative Bank: A bank that holds deposits, makes
loans and provides other financial services
to cooperatives and member-owned organizations. Also
known as Banks for Cooperatives.
• Regional Bank: A regional bank is a depository
institution, i.e. a bank, savings and loan, or credit union,
which is larger than a community bank, which operates
below the state level, but smaller than a money
center bank, which operates either nationally or
internationally.
• Rural Bank: Rural Bank can be defined as rural financial
institution/ cooperative/ community bank or deposit
taking MFI that provides customized financial services
to rural communities. BUDGET. Budget is a projection of
the income and expenditure from business activities of
an institution in for a set time period

11. B) Non Banking Institution : (NBFI) is a financial
institution that does not have a full banking license or is
not supervised by a national or
international banking regulatory agency.
• Organized Institution
• Non Organized Institution

12. Financial Market
1)Money Market
• Call Money Market
• Commercial Bill
• Treasury Bill
2)Capital Bill
• Primary Market
• Secondary Market

13. • Money market is the market for very short term loans. It
mainly centers round its activities on the discount
houses, the commercial banks. The money market, deals
in various credit instruments such as, the bill of
exchange, short dated bonds, certificate of deposits, the
treasury bills, etc.
•
Capital market refers to a market where the financial
institutions mobilize the savings of the people and lend
them for long term, period for raising new capital in
country. Capital Market, in other words, refers to the
long term borrowing and lending of capital funds

14. Types of Financial Services
FUND BASED SERVICES
Equipment
Leasing/Finance
Bill Discounting
 Venture Capital
Housing Finance
Insurance Services
NON FUND BASED
SERVICES
 Issue Management
Portfolio Management
Corporate Counseling
Loan Syndication
Merger and Acquisition
Capital Restructuring
Credit Rating
 Stock Broking

15. Financial Instrument
1) Types
Primary
Secondary
2) Term
Short Term
Long Term
Medium Term

16. Fund- Based Services
1) In fund-based services the firm raises funds through
debt, equity, deposits and the bank invests the funds in
securities or lends to those who are in need of capital. Fund
based Services are the activities which come under the
following:
Primary market activities Management of Financial
Services
Secondary market activities
 Foreign exchange market activities
Specialized financial services activities
Financial engineering activities

17. Fee Based Services
2)Fee based financial services are those services wherein
financial institutions operate in specialized fields to earn a
substantial income in the form of fees or dividends or
brokerage on operations. The major fee based financial
services are as follow:
 Managing Capital Issues according to SEBI guidelines
 Making arrangements of funds from financial
institutions to meet the project cost and working capital.
 Making arrangements for the placement of capital and
debt instruments with investment institutions.
 Assisting in the process of getting all government and
legislative clearances Managing the portfolio

18. Modern financial services
1.Rendering project advisory services.
2.Planning for mergers and acquisitions.
3. Guiding corporate customers in capital restructuring.
4. Acting as Trustees to Debenture holders.
5. Recommending suitable changes in financial structure.
6.Structuring the financial collaboration through joint
ventures
7. Rehabilitating and reconstructing sick companies through
reconstruction.

19. 8.Hedging of risks through derivative trading.
9.Managing portfolio of public sector corporations.
10. Asset liability management.
11. Undertaking risk management services through
insurance.
12.Advising clients for selecting the best source of funds.
13.Guiding clients for determining the optimum debt-equity
mix.
14.Undertaking specialized services like credit rating,
underwriting, registration and transfers, clearing services,
custodian services etc.