MBA-Finance Management of Financial Services
UNIT - ILearning Objectives:
After reading this chapter you will be conversant with:
Meaning and Definitions of Financial services
Kinds of Financial services
Evolution and growth of these services
Nature and characteristics of financial services
Goods marketing v/s service marketing
Strategic financial services
Services Marketing triangle The Financial services sector in India is blooming and hasbecome one of thelucrative areas to professionalism. The sector has undergonemetamorphosissince 1990. Indian economy got liberalized during 1991 andthe financial sectorwas kept open for private and foreign players. During thelate eighties, thefinancial services industry in India was dominated bycommercial banks andother financial institutions governed by the CentralGovernment. The economicliberalization has brought in a complete transformation inthe Indian financialservices industry.Prior to the economic liberalization, the Indian financialservice sector wascharacterized by various other factors, which was related tothe growth of thissector. Some of the factors of significance are as follows:
Too much of control and regulation by the apex bodies intheform of interest rates, money rates etc.
Controller of capital issues used to regulate the prices of securities
Absence off independent credit rating and credit researchagencies.
Strict regulation of the foreign exchange market