Financial services constitute an important component of the financial system.

Financial services are regarded as the 4th element of the financial system. Services that are offered by financial companies are called financial services. It includes all activities involved in the transformation of SAVINGS into INVESTMENTS.

CHARACTERISTICS
Intangibility Customer orientation Agent Link Perishability Dynamism Distribution of risk

Fund raising Funds deployment Specialized services Regulation Economic growth

Merchant Banking Era Investment Companies Era Modern Services Era Depository Era Legislative Era FIIs(Foreign Institutional Investors) Era

DISTINCTIVENESS
Monetary

Character Direct linkage with the economy Different customer pattern Different consumption pattern Distinctive channels of distribution Tailor-made products Public image of the institutions Complexity

 Limited

innovation Lack of expertise Inadequate quality service Inadequate technology Inadequate accommodation Restricted scope of operation Insufficient competitive advantage Unfair practices by firm

 Low

profitability Keen competition Economic liberalization Improved communication technology Customer services Global impact Investors awareness

FINANCIAL SERVICES

FUNDBASED/ASSET

FEEBASED/ADVISORY

FUND-BASED CORPORATE

FUND-BASED RETAIL

FEE-BASED CORPORATE

FEE-BASED RETAIL

MEANING
FUND BASED FS:- When financial services are used

for creating asset or are supported by asset where the funds are transformed into asset, they are known as fund based financial services.
NON FUND BASED FS:- Non fund based financial

services do not create immediate funds, they enable the creation of funds through their services for which they charge a fee.

SCOPE OF FINANCIAL SERVICES

TRADITIONAL ACTIVITES

FUND BASED:Underwriting Dealing in secondary market services Participating in money market instruments Leasing, Hire purchase, Venture capital

FEE BASED:Managing the capital issues Arrangement for placement of capital and debt instruments Arrangement of funds from financial institutions Assisting in government and other clearance

SCOPE OF FINANCIAL SERVICES

MODERN ACTIVITIES
Rendering

project advisory services Planning for mergers and acquisition Acting as trustees to the debenture holders Hedging of risks Managing the portfolio of large public sector companies Undertaking risk management services

Merchant Banking Loan Syndication Leasing Mutual Funds Factoring Venture Capital Custodial Services Corporate Advisory Services Securitization Reverse Mortgage Derivatives

FUND-BASED/ASSET FINANCIAL SERVICES

FUND-BASED CORPORATE

LEASING HIRE PURCHASE MORTGAGE LOANS WORKING CAPITAL FINANCE FACTORING FORFAITING COMMERICIAL PAPER CERTIFICATE OF DEPOSIT BANK DEPOSIT SCHEME BONDS AND DEBENTURE

FUND-BASED RETAIL PERSONAL FINANCE CONSUMER FINANCE HOUSING FINANCE RESIDENTAL MORTGAGE BACKED SECURITIES REVERSE MORTGAGE EDUCATIONAL LOAN AUTO MOBILE LOAN DISCOUNT/PURCHASE OF CHEQUES DEPOSITS SCHEME CHITTIES & NIDHIS MUTUAL FUNDS

FUND BASED CORPORATE FS

LEASING:-A lease is an agreement under which a company HIRE PURCHASE:-It is defined as An agreement under which goods are let on hire

MORTGAGE LOANS:-It is a financing arrangement.

WORKING CAPITAL FINANCE:- It is that part of business which finances day to day. FACTORING:- Factoring refers to the process of managing the sales register of a client..

FUND BASED CORPORATE FS

FORFAITING:- Forfaiting is a technique by which a forfaitor discounts an export bill.....

COMMERCIAL PAPER:-It is an unsecured money market instrument..

CERTIFICATE OF DEPOSIT:-It is another avenue for the corporate bodies..

FUND BASED CORPORATE FS

BANK DEPOSIT SCHEME:-Commercial banks offer. BONDS & DEBENTURES:- It is IOU

FUND BASED RETAIL FS

PERSONAL FINIANCE:- It represents credit facilities CONSUMER FINANCE:-It is extended by banks

HOUSING FINANCE:- They are given as direct and indirect loans..

RESIDENTIAL MORTGAGE BACKED SECURITIES:Primary and secondary mortgage REVERSE MORTGAGE:- It is the mortgage loan facility.

EDUCATIONAL LOAN:- They are extended with the aim of..

AUTOMOBILE LOAN:- Banks are extending credit for purchase of.

DISCOUNTING/PURCHASE OF CHEQUES:- Banks are extending credit to customers by DEPOSIT SCHEME:- Banks provide various deposit schemes

CHITTIES & NIDHIS:- Chits are financial instrument organized by

MUTUAL FUNDS:- The fund provides investment avenues for small investors

FEE-BASED/ADVISORY FINANCIAL SERVICES

FEE-BASED CORPORATE
MERCHANT BANKING GURANTEES LETTER OF CREDIT BILLS OF CO-ACCEPTANCE FACILITY CREDIT INSURANCE CREDIT SYNDICATION CORPORATE RESTRUCTURING CREDIT RATING ELECTRONIC FUND TRANSFER CERTIFICATION SERVICES CASH M`ENT SERVICES VENTURECAPITAL FINANCE

FEE-BASED RETAIL

PERSONAL TAX COUNSELLING CREDIT CARD,DEBIT CARD,SMART CARD BARTER CARD ATM FOREIGN INWARD REMITTANCE FOREIGN OUTWARD REMITTANCE FUND TRANFER FACILITY

SAFE DEPOSIT LOCKERS

SAFE CUSTODY FACILITY CERTIFICATION PORTFOLIO MENT

BANA SSURANCE

MERCHANT BANKING:- A merchant banker is a financial intermediary who helps to transfer..

FEE BASED CORPORATE FS

GUARANTEE:- A guarantee is a contract between..............

LETTER OF CREDIT:- A letter of credit is a written undertaking issued by.. BILLS OF CO-ACCEPTANCE FACILITY:- Buyers of capital goods may need. CREDIT INSURANCE:- It is recovery of loans and advances

FEE BASED CORPORATE FS

CREDIT SYNDICATION:- It refers to a loan arranged by a bank called .. CORPORATE RESTRUCTURING:- It is the process of dismantling &

CREDIT RATING:- This is a services provided to lenders &

ELECTRONIC FUND TRANSFER:- It is a mechanism. CERTIFICATION SERVICE:- Banks issue various certificates to the customers..

FEE BASED CORPORATE FS

VENTURE CAPITAL FINANCE:- It is referred to as financing of new ideas..

FEE BASED RETAIL FS:

PERSONAL TAX COUNSELLING:- According to income tax 1961. CREDIT CARD, DEBIT CARD & SMART CARD:- Credit card can be used for.. Debit card can be used for.. Smart card is a plastic card.. BARTER CARDS:- It enables trading in commodities without. ATM:- It enables the customer to withdraw

FEE BASED RETAIL FS:

FOREIGN INWARD REMITTANCE:- The foreign inward remittance involves.. FOREIGN OUTWARD REMITTANCE:- Authorized dealer are permitted in..

FUND TRANSFER FACILITIES:- Fund transfer facilities provided by banks are

SAFE DEPOSIT LOCKERS:- It is a facility provided by bank to..

FEE BASED RETAIL FS:

SAFE-CUSTODY FACILITIES:- Banks are providing facility to keep valuables like.. CERTIFICATION:- Banks issue various certificates to the customers.. PORTFOLIO MANAGEMENT:- It is service offered by financial institutions to

BANA SSURANCE:- It is a combination of banking and insurance....

PRESENT SCENARIO
Conservation

to dynamism Emergence of primary equity market Concept of credit rating Process of globalization Process of liberalization

REFERENCES:*FINANCIAL SERVICES BY DR S. GURUSWAMY. *FINANCIAL SERVICES BY M Y KHAN *INDIAN FINANCIAL SYSTEM BY DR S. GURUSWAMY. *FINANCIAL SERVICES AND SYSTEM BY K SASIDHARAN & ALEX K MATHEWS *WWW.GOOGLE.COM/FINANCIAL SERVICES/SCRIB *HTTP://EN.WIKIPEDIA.ORG/WIKI/FINANCIAL SERVICES *HTTP://WWW.GOOGLE.CO.IN/IMGRES?Q=FINANCIAL+SERVICES *HTTP://THE FINANSER.CO.UK