importance of financial services

Topics: Investment, Insurance, Bank Pages: 6 (1923 words) Published: March 27, 2014
INTRODUCTION
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. These are the types of firms comprising the market, that provide a variety of money and investment related services. Financial services are the largest market resource within the world, in terms of earnings. Defining Financial Services can also be termed as, any service or product of a financial nature that is the area under discussion to, or is governed by a measure maintained by a Party or by a public body that exercises regulatory or supervisory authority delegated by law. Understanding Financial Services

Financial Services are generally not limited to the field of deposit-taking, loan and investment services, but is also present in the fields of insurance, estate, trust and agency services, securities, and all forms of financial or market intermediation including the distribution of financial products. Aligned with a background of sharp risk, market and regulatory pressures, Financial Services organizations are striving to grow and enhance their shareholder values. Financial services encompass a variety of businesses that deal with money management. These include many different kinds of organizations such as banks, investment companies, credit card companies, insurance companies and even government programs. Financial services can also refer to the services and products that money management organizations offer to the public. Banks are one kind of financial services organizations. Banks generally function by providing a sheltered and secure place for people to store their money. Usually, banks will invest their clients' stored money for the bank's gain, while paying a small amount of interest to those who keep their money in savings or checking accounts. Banks often provide a variety of financial services, including the issuance of loans, mortgages, checks, and credit cards. Some banks are known as private banks and offer services only to those who have a high net worth. Generally, private banks will offer a broader range of services to their clients than other banks. Some essential primary banking services:

When ever needed allow withdrawals and keeps money safe.
It provides the provision of loans and mortgage loans that are needed to purchase a home, and property as well as business. The use of Automatic teller Machines (ATM) allows financial transactions at branches. To meet monthly spending commitments of citizens in their current account, provide overdraft agreements for the temporary advancement of the Bank's own money. To settle credit advances monthly, provide Charge cards advances of the Bank's own Monet for citizens wishing. For making bills and payments automatically, they provide the facility of standing orders and direct debits. Given below are the various types of financial services which one can expect getting from financial institutions – Banking – Under this an individual can deposit his or her money and can get return in the form of interest and also borrowers can get loan by paying interest to bank periodically. Insurance – By using this one can get peace of mind as one can buy insurance policies like life insurance, fire, marine, health and general insurance which ensures that person in the event of any mishap can get his or her money back from insurance company. Stock Market – One can invest his or her funds into stock market also where one gets dividends and also capital appreciation, if one makes right investment decision than return from equity markets are much greater than that of fixed deposits parked in banks. Treasury or Debt instruments – Under this one can invest his or her money into government bonds and also debt instruments of private and public firms.  Wealth...

References: Jay, N. (2012), The Professional 's Guide to Financial Services Marketing, 2nd edition Publisher: Bloomberg Press.
Patti, W. (2012), Marketing for Financial Advisors: Build Your Business, 2nd edition
Philip K, and Kevin K. (2009) ,Marketing Management, 13th edition, Publisher, Prentice-Hall; Publisher: Bloomberg Press.
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