Meaning of financial services

It can be defined as ,”activites ,benefits nd

satisfactions ,connected with the sale of
money, that offer to users and
customers,financial related value
 Suppliers of financial services
 Banking and financial institutions
 House building societies
 Insurance companies
 Credit card issuer companies
 Investment trusts and mutual funds
 Stock Exchanges
 Leasing Companies
 Unit Trusts
 Finance companies and so on
 Main sectors of financial services
• Banking Companies

• Financial Institutions

• Non- Banking Financial institutions (NBFC)

 Features of Financial Services
• Intangible
• Direct sale
• Heterogeneity
• Labour intensive
• Fluctuations in demand
• Protect Customers Interest
• Geographical dispersion
• Information based
• Required quality labour
• Lack of special identity
 Kinds of financial services
A. Asset based/Fund based services:

 Equipment leasing / finance

 Hire purchase and consumer credit
 Bill discounting
 Venture capital
 Housing finance
 Insurance services
 Factoring
B. Fee based/ advisory services:

 Issue management
 Portfolio management
 Corporate counseling
 Loan syndication
 Mergers and acquisitions
 Capital restructuring
 Credit rating
 Stock broking