FINANCIAL SERVICES

Conducted by
Sreejith -MGT 0905289
Tijo Thomas-MGT 0905295
&
Sreekala-MGT 0905290
• …….Where Do I Keep My Money?
• …….Evaluating Financial Services
• …….Banks, Yesterday and Today
Where Do I Keep My Money?
Overview

• The functions of banks

• The cost of alternative financial services
• The stability of banks
• Services that are financial in nature.

• Is a process by which funds are mobilized from a

large number of savers and make them available to
those who are in need of it and particularly to
corporate customers

• Part of financial system consisting of

financialinstitution,markets, instruments,etc
 FEATURES OF FINANCIAL SERVICES

• Intangible in nature.
• Inseparable fro the provider.
• Customer centric.
• Dynamic in nature.
• Credibility of partners is very important in them.
 FUNCTIONS OF FINANCIAL SERVICES

• Mobilization of funds.
• Effective employment of funds.
• Provision of need based services.
• Provision of regulated services.
• Enhancement of economic development.
 ALTERNATIVE FINANCIAL SERVICES

• Check-Cashing Services
• Check-Deferrals, Cash Advances, Payday Loans
• Pawn Shops
• Rapid Tax Refunds
• Rent-to-Own
• Other Financial Services
 FEDERAL DEPOSIT INSURANCE
CORPORATION (FDIC)

• Established in 1933.
• Insures most Savings, Checking,
and other Deposit Accounts,
up to $100,000 per depositor,
per institution.
• Applies to most Commercial
Banks, Savings Banks, and
Savings Associations.
 EVALUATING FINANCIAL SERVICES

Overview
• Formal and informal financial services
• Costs of alternative financial services and
average bank accounts
• Advantages of establishing a banking relationship

FORMAL
FINANCIAL SERVICES
• Accounts
• Credit cards
• Loans
• Investment vehicles
• Direct deposit
• Wire transfers/ remittances
INFORMAL FINANCIAL
SERVICES
• Payday lenders
• Check cashing services
• Rent-to-own stores
• Pawn shops
• Title lenders
• Loans from family/friends
• Cultural savings clubs
• Remittances offered through
nonfinancial institutions
 ADVANTAGES OF ESTABLISHING A BANKING
RELATIONSHIP
• Nearly everyone needs a bank account to help manage his or her day-to-day
money.
• Bank accounts can help you to:
• Pay bills
• Manage your money
• Receive money
• Send money to a friend or family member
• Keep your money secure
• Start building wealth
• Earn interest
 Banks, Yesterday and Today
Overview

• The many traditional financial services provided by a bank

• Other expanded financial services provided by a bank
• The impact of banks throughout the community
 TRADITIONAL EXPANDED
SERVICES SERVICES
OF BANKS OF BANKS

• Checking Accounts • Insurance Sales

• Savings Accounts • Small Business Advising and
• CDs (Certificates of Deposit) Loans
• Savings Bonds • Investments
• Loans • Credit Cards
• Car • Remittances
• Home
• Personal
• Safe Deposit Boxes
FINANCIAL SERVICES MODERNIZATION ACT (1999)

• Transformed the banking industry. Eliminated many

• restrictions among companies in the securities,
• banking, and insurance industries.

• Results?
• Banks may offer some insurance and investment services.

• Investment and insurance companies may offer some traditional

banking services. Investments are not insured by FDIC.
• SOME COMMUNITY-RELATED SERVICES OF BANKS

• Bank employees mentor students in areas of basic financial skills.

• Bank employees serve on community organizations’ boards of

directors.

• Banks provide scholarships to students going into the banking

profession.

• Banks fund affordable housing construction.

 Thank
you….