Financial Service Management Introduction

Overview of Financial Services:- Nature, scope and importance Financial System and Markets: Types, Constituents and functioning,

1. BY Dr. Y.Dhoke

2. Financial System An institutional framework existing in a country to enable financial transactions Three main parts Financial assets (loans, deposits, bonds, equities, etc.) Financial institutions (banks, mutual funds, insurance companies, etc.) Financial markets (money market, capital market, forex market, etc.) Regulation is another aspect of the financial system (RBI, SEBI, IRDA, FMC)

3. Financial services refer to services provided by the finance industry. Services that are financial in nature. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises. Introduction

4. Fund or asset based financial services Fee based financial services

5. Fund or asset based financial services In fund basis activities funds are arranged for the customers and the financial intermediary charges interest for the amount of funds utilized. The funds outlay happens in the form of sanction of credit facility to the borrower.

6. Fee based financial services A fee-based service is usually offered by a financial advisor who charges an annual percentage of the client's assets as a flat fee for all or most professional services.

7. Functions of Financial Systems Mobilise and allocate savings Monitor Corporate performance Provide payment and settlement systems Optimum allocation of risk-bearing and reduction Disseminate price- related information Offer Portfolio adjustment facility Lower the cost of transaction