FINANCIAL SERVICES

DEFINITION

 Facilities such as saving accounts, checking

accounts, conforming leasing and money
transfer, provided by Banks, Credit unions,
and finance companies .
FEATURES

 Intangible in nature.

 Inseparable from the provider.

 Customer centric.

 Dynamic in nature

 Credibility of partners is very important in them

TYPES OF FINANCIAL SERVICES

Financial
Services

Commercial Investment Advisory

Insurance
Bank Services Services

• Private banking • Asset • Insurance • Stock brokers

• Investment Management Brokerage (private client
services) and
Banks • Hedge Fund • Insurance
discount
• Bank cards Managers Underwriting
brokers
• Custody services • Reinsurance
• Credit card
machine services
and networks

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PRIVATE BANKING FOR HIGH NET-
WORTH INDIVIDUALS

 High net worth individuals

 Income / net worth
 Services
 Premier Banking
 Personal Investment services
 Trust services
 Investment planning
 Financial treasury
 Cash management
 Guarantees
 RETAIL BANKING
 Retail banking is typical mass-market banking where
individual customers use local branches of larger
commercial banks for their financial requirements.
 Services offered include:
 savings and checking accounts,
 mortgages,
 personal loans,
 debit cards, credit cards,
 Consumer credit
BANK ASSURANCE

 Banking and insurance services

 Conflict of interest
 Combination products

 Leverage on the existing customer base

 Innovative insurance products

LEASE

 Lease is a form of contract transferring the use or

occupancy of land, space, structure or equipment
in consideration of a payment, usually in the form
of rent.
 Lessor (leasing company - remains the owner)
 Lessee: (the user – may be an individual or
organizations)
 Rentals are predetermines and are payable at fixed
intervals of time according to mutual convenience
ELEMENTS OF LEASING

 Parties to the contract

 Assets

 Ownership separated from the user

 Term of lease
 Lease rentals
TYPES OF LEASE

 Financial lease
 Operating lease

 Leverage lease
 Sale and lease back

 Cross border lease

 FINANCIAL LEASE

 Also known as a capital lease, a financial lease is a

situation in which a finance company or other lessor
purchases an asset, then leases that asset to a client or
lessee for a specified amount of time. At that point,
the client takes possession of the asset and is free to
utilize the asset for the duration of the lease
agreement. Once the client has fulfilled the terms of
the lease, including paying any applicable interest,
the client usually has the option of purchasing the
asset from the finance company at an extremely low
price.
OPERATING LEASE

 A lease for which the lessee acquires the property

for only a small portion of its useful life. An
operating lease is commonly used to acquire
equipment on a short-term basis. Any lease that is
not a capital lease is an operating lease
 LEVERAGE LEASE

 A lease in which the lessor puts up some of the

money required to purchase the asset and
borrows the rest from a lender. The lender is
given a mortgage on the asset and an assignment
of the lease and lease payments. The lessee
makes payments to the lessor, who makes
payments to the lender.
CROSS BORDER LEASE

 Cross-border leasing is a leasing arrangement

where lessor and lessee are situated in different
countries. This presents significant additional
issues related to tax avoidance and tax shelters.
Cross-border leasing has been widely used in
some European countries, to arbitrage the
difference in the tax laws of different
jurisdictions, usually between a European country
and the United States.
SALE AND LEASE BACK

 A person who has an asset sells it to the lessor

and takes the asset back on lease
 Net lease - Lessee pays all maintenance charges,
insurance, property taxes etc.
 May allow repurchase after the lease period.
CONTENTS OF A LEASE AGREEMENT

 Amount, time and place of lease rental payment

 Time and place of equipment delivery
 Lessee’s Responsibility for taking possession of
leased equipment
 Lessees right to enjoy the benefits of warranties
provided by the equipment manufacturer
 Insurance of the equipment
 Options for renewal
 Options for purchase
 Return of the equipment