About financial services

1. Financial Services
SUBMITTED TO:- SUBMITTED BY:-
MRS. ALKA SOOD ASHWANI KUMAR
18PBA026

2. Financial Services
Financial Services is a term used to refer to the services provided by
the finance market. Financial Services is also the term used to describe organizations that
deal with the management of money. Examples are the Banks, investment banks, insurance
companies, credit card companies and stock brokerages.
Following are a few examples of financial services:
 Banking.
 Insurance.
 Mutual Funds.
 Payment Banks/ Payment Processing companies like paytm.
 Housing Financing Companies like HDFC, LIC Housing, etc.
 Stock broking services.
 Investment Banking.

3. Nature of Financial Services
 Customer-Specific
 Intangibility
 Concomitant
 The tendency to Perish
 People-Based Services
 Market Dynamics

4. Scope of Financial Services
The following scope of Financial services, and cover a wide range of activities. They
can broadly classify into two, namely:
Traditional Activities:
Traditionally, the financial intermediaries have been rendering a wide range of
services encompassing both capital and money market activities. They can group
under two heads, viz.
 Fund based activities and
 Non-fund based activities
A. Fund based activities:
 Underwriting or investment in shares, debentures, bonds, etc. of new issues
(primary market activities).
 Dealing with secondary market activities

5. B. Non-fund based activities:
 Managing the capital issue i.e. management of pre-issue and post-issue activities
relating to the capital issued by the SEBI guidelines and thus enabling the promoters
market their issue.
 Making arrangements for the placement of capital and debt instruments with
investment institutions.
Modern Activities:
 Rendering project advisory services right from the preparation of the project report
until the raising of funds for starting the project with necessary Government
 Planning for M&A and assisting with their smooth carry out.
 Guiding corporate customers in capital restructuring.
 Acting as trustees to the debenture holders

6. Types of Financial Services
1. Assets or fund based services
2. Fee based or advisory services
1. Assets or fund based services
. Equipment Leasing/Lease Financing
. Hire Purchase and Consumer Credit
. Venture Capital
. Bill Discounting
. Housing Finance
. Insurance Services

7. 2. Fee based/Advisory Services
. Merchant Banking
. Stock Broking and Depository Services
. Credit Rating
Financial Regulation:
Financial regulation is a form of regulation or supervision, which subjects financial
institutions to certain requirements, restrictions and guidelines, aiming to maintain the
integrity of the financial system. This may be handled by either a government or non-
government organization. Financial regulation has also influenced the structure of
banking sectors by increasing the variety of financial products available.

8. Need for Regulation of Financial
Market
 Regulation helps make sure that banks have good management so they don't make
bad investments or are too risky. Regulation is used to make it less likely people will
take out their money unexpectedly.
 Ensuring firms have the funding to trade safely, have the appropriate risk controls in
place and are appropriately governed is known as “prudential regulation”.
 Ensuring firms treat customers fairly from the sales process to how complaints are
managed, is known as “consumer protection”.
 An important part of prudential regulation is authorisation. We call this our
“gatekeeper role” and means we only allow firms to operate in the financial system
once they have fulfilled a number of criteria, including governance and risk control.
 Consumer protection rules are also in place. These spell out how firms must treat
their customers when selling them financial products. So for example, a regulated
firm must ensure that it “acts honestly, fairly and professionally in the best interests
of its customers and the integrity of the market”