This PPT gives the Introduction to the financial services, their strengths, weakness, opportunities as well as Trends in Banking & Financial Services. This presentation also includes the Recent developments in the finance field and the strategies to manage demand and capacity within the Financial Service Industry. It also presents the information about the major types of financial services and 7Ps of the same.

1. Financial Services and Recent
Developments
Presented By:-
Name:- Adamya Kumar
- A topic of Marketing of Services

2. Introduction to the Financial Services
Financial services are the economic services provided by the finance industry. It
encompasses various range of businesses that mange money, including credit unions,
credit card companies, banks, insurance companies, accounting agencies. These
services are present in all the areas of the country from rural to urban areas and
business capitals. This industry is the backbone of Economic Structure of the country.

3. Strengths of the Financial Services Industry
It is one of the oldest industries
Initially it started with barter system but now it has branched out
providing numerous sub-services to individuals and companies.
Thus this system will exist for time we can think of.
A leader in economic growth
Supply and demand have fostered this growth and also improved
financial trade, financial stability, and financial security. It’s also
one factor behind increased employment and the reduction of
worldwide poverty.

4. Strengths of the Financial Services Industry
Financial support after a crisis
After experiencing a loss or natural calamity, the banking industry
helps customers get back on their feet. Insurance, investment and
loan options are to thank for this.
Digital banking convenience
It’s now easier than ever to do banking and investing online.
You can deposit your check, pay your bills, and apply for a
credit card without stepping foot into your bank’s branch.

5. Weaknesses of the Financial Services Industry
• Lack of worldwide coordination
Because the banking industry handles finances, it’s a vulnerable industry.
It also relies heavily on the coordination of the economy, but this is a
problem on a global scale.
• Old technology leads to vulnerabilities
Many banks still use outdated IT infrastructure to host online services. For
instance, some banking websites don’t use case sensitive passwords or
allow customers to put special characters in passwords. This makes
passwords extremely weak and easy for hackers to brute-force into your
accounts.

6. Weaknesses of the Financial Services Industry
• No access to rural areas
Rural regions don’t have access to banking and services. Part of this is
because of conflicts between government objectives and banking
objectives. Another reason for the lack of access is because providing
services to rural areas can be more trouble than it’s worth financially.

7. Opportunities for the Financial Services Industry
Move into rural regions
As mentioned in the weaknesses section, the banking
industry hasn’t approached rural areas yet. It’s an
opportunity to get more customers, but achieving
such a move isn’t a small feat. It may take dozens of
years before this approach is successful.
Offer more or lose customers
Banks should keep up with consumer demands and demographic changes.
Having a banking app isn’t enough — consumers (especially millennials) crave
more options. Providing what people want will require heavy research from
companies. It will also require segmenting customers to create custom-service
options.

8. Threats for the Financial Services Industry
Recessions
The biggest threat to any industry handling money
is a recession. It’s the most critical threat that can
make or break a business. If small and big
businesses fall, it’ll have a direct consequence on
the banking industry.
High competition
Banks have a ton of competition; not just with other banks, but with other
alternative finance companies. This includes mutual fund companies and
insurance companies. This can lead to overcrowding and can leads to
cannibalism.

9. Data breaches
With more online options, it also increases the risk for data breaches. People give
other websites like invoicing companies (like PayPal) access to their bank to receive
and transfer money. If these companies have a breach, it gives hackers access to
personal bank accounts. Although there is nothing banks can do for breaches on
other websites they can make sure their own is heavily protected against hackers.

10. 7P’s of marketing in financial services
1. Products: Means or tools to provide the financial services
• Deposits:- In various form such as banks provides different types
of accounts.
• Advances and loans- Credit facilities and advance payments on
account holder’s behalf. Loans such as car, property, personal,
housing, Education loans etc.
• Consultancy:- Advising individuals for investing in businesses
or performing mergers and acquisition
• Investment:- Market Investment of capital, Mutual funds,
forex, Gold investment
• Internet banking and Mobile banking
• Agriculture banking and micro credits

11. 3. Pricing
• Interest rates
• Consultancy fees
• Commission
4. Place
• Home/Office
• ATM
• Bank premise and institutional centers
2. Promotion
• Advertising: Television, movie theatres, radio, internet
advertising
• Print advertising : Print media such as newspapers,
magazines, Hoardings
• Publicity: Road shows, campus visits, sponsorships
• Sales promotion: Gifts discounts, commissions, incentives etc.
• Personal selling: Cross sales, personal promotions and
personalized services

12. 5. People
Branch managers
Front line officers
Employees
Customers
6. Process
Opening a bank account
Filling broker form, Adopting an
insurance plan and others
7. Physical evidence
• Signage
• Hoardings and billboards
• Financial Statement and reports
• Tangibles
• Punch lines

13. Major types of financial services
1. Corporate bank services
These include tasks such as
• Keeping money safe and allowing withdrawals
• Managing salary accounts
• Providing personal, home, mortgage and other types
of loans.
• Providing facilities such as current account, fixed
accounts and trading or Demat accounts
• Issue of credit and debit cards
• Providing Internet banking services.

14. Major types of financial services
2. Investment banking services
• Structured finances: Developing financial
products for high net worth individuals and
intricate business.
• Advising companies in mergers and acquisitions
• The perform brokerage services also such as
making payments on behalf of the companies
• Private banking services
• Help in restructuring of business and other units.

15. Major types of financial services
3. Foreign exchange services
• Currency exchange
• Wired international transfers
• Migrant workers sending money to their home countries
4. Other financial services
• Angel investments providing individuals or companies
• Payment recovery services
• Debt resolutions providing companies:- A consumer service that
assists individuals that have too much debt to pay off as
requested, but do not want to file bankruptcy and wish to pay off
their debts owed

16. Strategies to manage demand and capacity within the
Financial Service Industry
The two methods to manage Demand and capacity are:-
1. The manager can attempt to
affect demand by :-
• Developing off-peak pricing
schemes
• Non peak promotions
• Complementary services
• Reservation system
2. The manager has more direct
influence on the supply aspects of
capacity planning than on the
demand size, To this advantage
manager can:-
• Using part time employees
• Maximizing efficiency
• Sharing capacity
• Investing in the expansion ante
• Seeking the best fit

17. Trends in Banking and Financial Services in India
The Banking industry and financial institutions are vital sectors of any economy.
Development of these two sections of the economy can impact the growth of the
country in an incredible way. In the era of “Digital India”, the banking and financial
services in India have undergone a massive evolution and the phenomenon
continues. Few Trends in Banking and Financial Services in India that Are Changing
the Entire Scenario are:-
1. Digitization
With the rapid growth of digital technology, it
became imperative for banking and financial
services in India to keep up with the changes and
innovate digital solutions for the tech-savvy
customers. Besides the financial institutions,
insurance, healthcare, retail, trade, and commerce
are some of the major industries that are
experiencing the enormous digital shift.

18. Trends in Banking and Financial Services in India
2. Enhanced Mobile Banking
Mobile banking is one of the most dominant current trends in banking
systems. As per the definition, it is the use of a smartphone to perform various
banking procedures like checking account balance, fund transfer, and bill
payments, without the need of visiting the branch. This trend has taken over
the traditional banking systems.

19. 3. UPI (Unified Payments Interface)
UPI or Unified Payments Interface has changed the way payments are made. It is a
real-time payment system that enables instant inter-bank transactions with the use
of a mobile platform. In India, this payment system is considered the future of retail
banking. It is one of the fastest and most secure payment gateways that is
developed by National Payments Corporation of India and regulated by the Reserve
Bank of India. This system makes funds transfer available 24 hours, 365 days unlike
other internet banking systems.

20. 4. Artificial Intelligence Robots
Several private and nationalized banks in India have started to adopt
chat-bots or Artificial intelligence robots for assistance in customer support
services. For now, the use of this technology is at a nascent stage and
evolution of these chat-bots is not too far away. Usage of chat-bots is
among the many emerging trends in the Indian banking sector that is
expected to grow.

21. 5. The Rise of Fin-tech Companies
Previously, banks considered Fin-tech companies a disrupting force. However, with
the changing trends in the financial services sector in India, Fin-tech companies
have become an important part of the sector. The industry has emerged as a
significant part of the ecosystem. With the use of financial technology, these
companies aim to surpass the traditional methods of finance. In the past few
decades, massive investment has been made in these companies and it has
emerged into a multi-billion-dollar industry globally.

22. 6. Cloud Banking
Cloud technology has taken the world by storm. It seems the technology will soon
find its way in the banking and financial services sector in India. Cloud computing
will improve and organize banking and financial activities. Use of cloud-based
technology means improved flexibility and scalability, increased efficiency, easier
integration of newer technologies and applications, faster services and solutions,
and improved data security.
7. Block Chain
Block chain is the new kid on the block and the latest buzzword. The technology
that works on the principles of computer science, data structures and
cryptography and is the core component of crypto currency, is said to be the
future of banking and financial services globally. Block chain uses technology to
create blocks to process, verify and record transactions, without the ability to
modify it.

23. 8. Biometrics
Essentially for security reasons, a Biometric Authentication system is changing the
national identity policies and the impact is expected to be widespread. Banking and
financial services are just one of the many other industries that will be
experiencing the impact. With a combination of encryption technology and OTPs,
biometric authentication is forecasted to create a highly-secure database
protecting it from leaks and hackers attempts.

24. 9. Wearables
With smartwatch technology, the banking and financial
services technology is aiming to create wearables for
retail banking customers and provide more control and
easy access to the data. This technology is anticipated
to be the future retail banking trend by providing
major banking services with just a click on a user-
friendly interface on their wearable device. These are
some of the recent trends in the banking and financial
sector of India and all these new technologies are
predicted to reshape the industry of business and
money.
10. Digital-Only Banks
It is a recent trend in the Indian financial system and cannot be ignored. With the entire
banking and financial services industry jumping to digital channels, digital-only banks
have emerged to create paperless and branchless banking systems. This is a new breed
of banking institutions that are overtaking the traditional models rapidly. These banks
provide banking facilities only through various IT platforms that can be accessed on
mobile, computers, and tablets.

25. Thank you