Financial Services

Meaning, Nature, Types

&
Scope

1
Service Sector in Indian
Economy

Indian Economy

Tertiary Sector or
Primary Sector Secondary Sector
Service Sector

2
Contribution of Service Sector
in Indian Economy
 At the time of independence:
 In 2008-
 Service Sector-55.1%
 Secondary-26.9%
 Primary-18.5%

3
Growth in Service Sector
From 1947 to 1990-Increased by-21%
From 1991 to 2008-Increased by-40%
In 2008-09-6.7%
In Q1(2009)-9.5%

4
Financial Services
 The Financial Services includes all
Activities connected with the
transformation of savings into
investments.
 Financial Services facilitate and
intermediate the financial transaction
of individuals and institutions.

5
Types of Financial Services

Financial Services

Fund or Assets Fee-Based Advisory

Based services Services

6
Fund Based Financial Services
 Lease financing
 Hire purchase finance & customer
Credit
 Factoring and Forfeiting
 Bill Discounting
 Housing Finance
 Insurance Services
 Venture Capital Financing

7
Fee-Based Financial Services
 Merchant Banking
 Credit Rating
 Stock Brokerage
 Portfolio Management

8
Special Features of Financial
Services
 More Sophisticated
 Long Term in Nature
 Need More Advise
 Rapid Changes
 Necessity for Other Sectors

9
Contemporary issues in
Financial Services
 More Regulation
 More Support From Govt.

10