I Financial Services

Financial Services: 

Financial Services It means mobilising and allocating savings. It includes all activities involved in the transformation of savings into investment. It can also be called financial intermediation . (it is a process by which funds are mobilised from large number of savers and make them available to all those who are in need of it and particularly to corporate customers.)

Financial Services-Classification: 

Financial Services-Classification Capital Market Intermediaries : consist of term lending institutions and investing institutions which mainly provide long term funds. Money market intermediaries : consist of commercial banks , co-operative banks and other agencies which supply only short term funds.

Financial Services-Scope: 

Financial Services-Scope Traditional Activities : ( a)Fund based activities -underwriting,dealing in secondary market activities, participating in money market instruments,involving in equipment leasing,hire purchase,Dealing in foreign exchange market activities. (b) Non fund based activities (fee based activities ) – managing the capital issue,assisting in the process of getting all Government and other clearances etc. Modern Activities : hedging of risks , managing the portfolio of large Public sector Corporations , planning for M & A and assisting for their smooth carry out etc.

Causes for Financial Innovations: 

Causes for Financial Innovations Low Profitability Keen Competition Economic Liberalization Improved Communication Technology Customer Service Global Impact Investor Awareness

New Financial Products and Services: 

New Financial Products and Services Merchant Banking Loan Syndication Leasing Mutual Funds Factoring Forfaiting Venture Capital Custodial Services Corporate advisory services New products in Forex Markets: Forward, Options, Futures ete.