Financial Services

Transcript

All type of activities which are of a financial nature are termed as financial services In broad sense it means mobilising and allocating savings Also known as financial intermediation Funds are mobilised from a large number of savers and make them available to all those who are in need of it ,particularly corporate customers This sector is a key area and is very vital for industrial developments Customer oriented Intangibility Simultaneous performance Dominance of human element Perishability Economic growth Promotion of savings Capital formation Provision of liquidity Financial intermediation Contribution to GNP Creation of employment opportunities Low profitability Keen competition Economic liberalisation Improved communication technology Customer service Global impact Investor awareness “financial engineering is the design,the development and the implementation of innovative financial instruments and processes and the formulation of creative solutions to the problems in finance” Financial engineering is the lifeblood of any financial innovation. Growing need for innovation has assumed immense importance in recent times Lack of qualified personnel Lack of investor awareness Lack of transparency Lack of specialisation Lack of recent data Lack of effcient risk management system Financial services cover a wide range of activities. They can be classified as Financial services Traditional Activities Modern Activities Fund based Fee based Dealing in secondary market services Participating in money market instruments Underwriting or investment of securities in new issue market Involving in leasing,hire purchase,venture capital etc Dealing in foreign exchange market activities Managing the capital issues(post and pre issue) Making arrangements for the placement of capital and debt instruments with investment institutions Arrangement of funds from F.I for clients Assisting in the process of getting all Govt. and other clearances  Rendering project advisory services  Planning and assisting for mergers and acquisitions  Guiding in capital restructuring  Acting trustees to the debenture holders  Managing the portfolio of large public sector corporations  Undertaking risk management services  promoting credit rating agencies  Undertaking capital market services  Guidance and advise the clients for best selection Merchant banking Leasing Mutual funds Factoring Venture capital Custodial services Hire purchase Discounting Securitisation credit rating  Industrial promotion through Merchant Banking Services  Working Capital finance Through Factoring Services  Equipment Finance through Leasing  Financial Resources through Mutual Funds  Long term risk capital through Venture Capital  Risk Management through Derivatives  Debenture Issue through Credit Rating  Development Finance through Development Banking Service  Industrial development through Specialised Services