Industrial analysis-

Financial Services
P R E S E N T E D TO - P R O F. TA R U N A G A RWA L S IR

P R E S E N T E D B Y-
GROUP NO.5
S A L ON I K A L R A ( T E A M L E A D E R )
B AR S H A R A N I S A H U
G E E T E S H K U MA R J A I N
N A R AYA N A D H I K AR I
P R A N S H U S HA R MA
S AL O N I KU MAR I
 Financial services
 The financial sector is a segment of the
economy composed of companies and
institutions that provide commercial and
retail customers with financial services.
A large portion of this sector produces
mortgage and loan income, which
Introduction increases the value as interest rates
decline.

 The economy's health is

mainly dependent upon the efficiency of
its financial sector. The better the
economy is, the safer it is for the
country. A weak financial sector
typically means a declining economy.
 ➔ The financial sector consists of
many different industries ranging
from banks, Investment houses,
insurance firms, Real
estate brokers, consumer finance
Classification firms, mortgage lenders, and real
estate investment trusts (REITs).
➔ Primarily, the financial sector
includes financial institutions,
banks, and non-banking financial
institutions.
Objectives
RAISES FUND PROMOTE SAVINGS

ECONOMIC GROWTH EMPLOYMENT GENERATION

Functions
ENABLES PAYMENT SYSTEM PROPER UTILIZATION OF FUNDS

PROMOTE TRADE MOBILIZATION OF SAVINGS

Types
BANKING PROFESSIONAL ADVISORY

WEALTH MANAGEMENT MUTUAL FUNDS

History of Financial Services
 Since historic time period India has always been
an agrarian country which is mainly because of
its geographic conditions and its resources which
has been the interests of various people who
have tried to take hold of it.
 The financial sector India dates back with the
establishment of British rule in India. The first
stock exchange was established in Mumbai in
1875, then in Ahmadabad in 1894, Calcutta 1908
and then in Madras in 1937.
 Financial Intermediaries
A financial intermediary is an institution which connects the deficit
and the surplus .The best example of an intermediary can be a bank
which transforms the bank deposit to bank loans. The role of financial
intermediary is to channel funds from people who have extra inflow
of money i.e., the savers to those who do not have enough money to
fulfill the needs or to carry out the basic activities i.e. the borrowers..

 Financial Market
 Financial Market is a mechanism that allows people to indulge
themselves in the buying and selling i.e. trade of financial securities
(for example stocks and bonds), commodities (for example precious
metals) at prices that reflect the market’s effectiveness.
Michael porter's five force model
THREATS OF NEW ENTRANTS BARGAINING POWER OF SUPPLIERS

Threats of Substitute Rivalry among the

Products or Services Existing Competitors

BARGAINING POWER OF BUYERS

VALUE CHAIN
ANALYSIS- FINANCIAL
SECTOR
 Mahindra Financial Services Limited
HR analysis
The Human Resource Department deals with the management
and control of people employed within the organization. The
Human Resource Department in Mahindra Finance is an effective
group of people who strive to work for the welfare of their
employees in the organization.
 Recruitment
Separation
and Selection
Induction
process,
Confirmation and and on-
transfer boarding 

Employee
Welfare and
Compensation
benefits
HR PROCESS Probation and
confirmation

Grievance
Human Resource
handling and
Record
performance
Management management
Payroll
Intimation
 OPERATIONS – THE HEART OF FINANCIAL INSTITUTIONS
Example elements of “operations”

Retail banks • Check processing

• Branch network
Operations is a integral function for
• Credit servicing and processing
financial institutions
• Printing and stalemating
• Customer quality and satisfaction
Investment banks • Trade processing • Economies
• Report production • Technology dependent
• Corporate action processing
• Trading P&L generation

Asset managers • Client servicing

• Position and order management
• Trade processing
• Custodian interactions

Insurance • Underwriting
companies • Claims processing
• Field and client servicing
SIGNIFICANT COMPONENT OF COST BASE - RETAIL
BANK EXAMPLE
Percent of revenues Operational
environment Examples
55-60
Corporate center 6-9
Judgment-intensive • Credit underwriting
Judgment-intensive processing
processing • Collections
3-6
• Investment
Factory-like processing 6-8 management
Contact centers 4-6
IT 6-9 Factory-like processing • Item processing
• Account maintenance
11-14 • Transaction processing
Branch/physical network
• Call centers
Purchased costs (non-IT) 14-21
Contact centers • Web sites

Retail bank Typical cost savings is

efficiency ratio 15-20% or 2-4 points of
efficiency ratio impact
 customer
retention

Benefits of
market
Predict Cost
changes segmentation reduction
in financial
services

Narrower
target
Types of Marketing
Strategy for Financial
Services

Rationalizatio
Defensive Offensive
n
 MARKET SIZE FINANCIAL
INDUSTRY
 AUM's mutual fund industry rose from Rs 10.96 trillion in October 2014 to Rs 23.93 trillion in April
2020.
 Equity mutual funds registered a net inflow of Rs 8.04 trillion
 The gross premium for the first year of life insurance firms amounted to Rs 2.59 lakh crore.
 A substantial growth of the Initial Public Offers (IPOs) market.
 In 2019, US$2.5 billion was raised over 17 IPOs.

secondry market
insurance industry
mutual fund
0 (TRILLION)
IN US 5 10 15 20 25 30 35 40 45 50

2014 2020 2019

Government initiative For finance sector
• Subsidy Scheme for small and medium-sized enterprises
• Pradhan mantari Jan Dhan Yojana
• The Government of India has introduced the IPPB.
• The Government allocated Rs 10,000 crore to the creation of AIFs for the revival of stalled
housing projects.
Recent trends and
Investments/
Developments
 Acquiring of 51% of wealth management and
capital requirement by PAG
 People's Bank of China made an equity
investment in Bajaj Finance to acquire less than
1%.
 Axis Bank acquired an additional 29% stake in
Max Life Insurance.
 ClearTax acquired GST software and services
business of Karvy Data Management Services.
FUTURE PROSPECTS
 India- one of the most vibrant global economies
on the back of robust banking and insurance
sectors. Over the coming quarters, there could be a
series of joint venture deals between global
insurance giants and local player.

The Mobile wallet industry is estimated to grow

at a Compound Annual Growth Rate (CAGR) of
150% to reach US$ 4.4 billion by 2022.

 Collaborations, artificial intelligence, and cyber

security are three trends that indicate the direction
the future of banking is heading.

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Thank you
GROUP- 5