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 Bank
Private banking Investment Banks Bank cards Credit card machine services and networks

Investment Services
Asset Management Hedge Fund Managers Custody services

Insurance
Insurance Brokerage Insurance Underwriting Reinsurance

Advisory Services
Stock brokers (private client services) and discount brokers

4

PRIVATE BANKING FOR HIGH NETWORTH INDIVIDUALS 


High net worth individuals 

Income / net worth Premier Banking Personal Investment services Trust services Investment planning Financial treasury Cash management Guarantees

Services 
     

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
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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

EASE AGREEMENT 

      

Amount, time and place of lease rental payment Time and place of equipment delivery essee¶s Responsibility for taking possession of leased equipment essees 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

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