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http://salescareers.about.com/od/Careers/a/Financial-Services-Sales-
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http://www.businessdictionary.com/defnition/fnancial-structure.html
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.
hese 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.
!efining 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 "arty or by a public body that exercises regulatory or supervisory authority delegated
by law.
#nderstanding 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.
%ligned with a background of sharp risk, market and regulatory pressures, Financial
Services organizations are striving to grow and enhance their shareholder values.
!ay by day the customer needs and expectations are growing. hus, making the mark
in increasing personal wealth, a mature population and the desire that can more easily
be reached to the personalized financial products and services. &ntense competition has
s'ueezed market margins and forced most companies to cut costs while enhancing the
'uality of customer choice and service.
%s Financial Services organizations strive to become more innovative and
entrepreneurial, the war for talent is intensifying. he risks increase as the products
become more complex, the organizations and the business environment ever more
uncertain.
%t the same time, regulation is the tightening highlight within the reach of public and
government pressure for improved supremacy, transparency and accountability.
&n this environment, the winners will be companies that can turn the challenges into
opportunities to build stronger and more enduring customer relationships, sharpen their
process efficiency, unlock talent and creativity, use improved risk management
processes to deliver more sustainable returns and use used regulatory demands as a
catalyst for strengthening the business and enhancing market confidence.
he fast pace of change aspect element within the global Financial Services market has
created the need for a new generation of solutions that can operate in real time with a
very flawless reliability.
he challenges faced by the Financial Services market are forcing market participants to
keep pace with technological advances, and to become more proactive and efficient
while keeping in mind to reduce costs and risks.
he Financial Services have been able to represent an increasingly significant financial
driver, and a significant consumer of a wide range of business services and products.
he current Fortune ()) has listed *) commercial banking companies with revenues of
almost a +,*- trillion, up a modest ,. since last year.
%nother +/)) trillion or so comes from the (/ companies comprising the savings
institutions, insurance and diversified financial companies.
he market in Financial Services is not only a powerful economic force, but can also be
considered as a driver of other industries0 success, standards, and operations. 1irtually
each and every company uses financial services institutions for not only their own, but
their customers business purposes, and the practices, regulations and standards that
the market adopts affects the way that their own customers.
o have an effective network strategy in place enables the Financial Services
organizations to become more customer$oriented. his helps to increase their
profitability, enhance the alertness factor, also lessen total ownership costs, and deal
with used business challenges.
here are many companies working with financial organizations worldwide to develop a
sound networking strategy for connecting companies with customers, suppliers,
partners, and employees too.
hus concluding here that the Financial Services market is diverse and dynamic. %n
ever$changing versatile, high$growth market, Financial Services consist of everything
from individual or group consultants to banks, credit cards and alternative financing
providers.
Businesses that have differing needs and the diversity and range of the financial
services market has several selections available to better suit them all.
here is a lot you can learn about the Financial Services industry. &t is an exciting,
important industry that has a direct impact on the way businesses operate and grow,
and subse'uently, the economy of our nation too.
Financial services
From Wikipedia, the free encyclopedia
Financial services are the economic services provided by the finance industry, which encompasses
a broad range of organizations that manage money, including credit unions,banks, credit
card companies, insurance companies, accountancy companies, consumer
finance companies, stock brokerages, investment funds and some government sponsored
enterprises.
As of 200, the financial services industry represented 20! of the market capitalization of the "#$
%00 in the &nited "tates. 'he &.". finance industry comprised only (0! of total non)farm business
profits in (*+, but it grew to %0! by 20(0. ,ver the same period, finance industry income as a
proportion of -.$ rose from 2.%! to +.%!, and the finance industry/s proportion of all corporate
income rose from (0! to 20!.
Contents
0hide1
( 'he history of financial servis
2 2anks
o 2.( 3ommercial banking services
o 2.2 4nvestment banking services
5 Foreign e6change services
4nvestment services
% 4nsurance
7 ,ther financial services
+ Financial crime
o +.( &8
9 :arket share
* "ee also
(0 ;eferences
(( Further reading
(2 <6ternal links
The history of financial servis[edit]
'he term =financial services= became more prevalent in the &nited "tates partly as a result of
the -ramm)>each)2liley Act of the late (**0s, which enabled different types of companies operating
in the &.". financial services industry at that time to merge.
0(1
3ompanies usually have two distinct approaches to this new type of business. ,ne approach would
be a bank which simply buys an insurance company or an investment bank, keeps the
original brands of the ac?uired firm, and adds the ac?uisition to its holding company simply to
diversify its earnings. ,utside the &.". @e.g., in AapanB, non)financial services companies are
permitted within the holding company. 4n this scenario, each company still looks independent, and
has its own customers, etc. 4n the other style, a bank would simply create its own brokerage division
or insurance division and attempt to sell those products to its own e6isting customers, with incentives
for combining all things with one company.
Banks[edit]
Main article: Bank
Commercial banking services[edit]
A =commercial bank= is what is commonly referred to as simply a =bank=. 'he term =commercial= is
used to distinguish it from an =investment bank,= a type of financial services entity which, instead of
lending money directly to a business, helps businesses raise money from other firms in the form
of bonds @debtB or stock @e?uityB.
'he primary operations of banks includeC
8eeping money safe while also allowing withdrawals when needed
4ssuance of che?uebooks so that bills can be paid and other kinds of payments can be
delivered by post
$rovide personal loans, commercial loans, and mortgage loans @typically loans to purchase a
home, property or businessB
4ssuance of credit cards and processing of credit card transactions and billing
4ssuance of debit cards for use as a substitute for che?ues
Allow financial transactions at branches or by using Automatic 'eller :achines @A':sB
$rovide wire transfers of funds and <lectronic fund transfers between banks
Facilitation of standing orders and direct debits, so payments for bills can be made
automatically
$rovide overdraft agreements for the temporary advancement of the 2ank/s own money to
meet monthly spending commitments of a customer in their current account.
$rovide internet banking system to facilitate the customers to view and operate their
respective accounts through internet.
$rovide 3harge card advances of the 2ank/s own money for customers wishing to settle
credit advances monthly.
$rovide a check guaranteed by the 2ank itself and prepaid by the customer, such as
a cashier/s check or certified check.
Dotary service for financial and other documents
Accepting the deposits from customer and provide the credit facilities to them.
"ell 4nvestment products like :utual funds etc.
Investment banking services[edit]

3apital markets services ) underwriting debt and e?uity, assist company deals @advisory
services, underwriting, mergers and ac?uisitions and advisory feesB, and restructure debt
into structured finance products.

$rivate banking ) $rivate banks provide banking services e6clusively to high)net)worth

individuals. :any financial services firms re?uire a person or family to have a certain minimum
net worth to ?ualify for private banking services.
021
$rivate banks often provide more personal
services, such as wealth management and ta6 planning, than normal retail banks.
051

2rokerage services ) facilitating the buying and selling of financial securities between a buyer
and a seller.
Foreign exchange services[edit]
Foreign e6change services are provided by many banks and specialist foreign e6change
brokers around the world. Foreign e6change services includeC
3urrency e6change ) where clients can purchase and sell foreign currency banknotes.
Wire transfer ) where clients can send funds to international banks abroad.
;emittance ) where client that are migrant workers send money back to their home country.
Investment services[edit]

Asset management ) the term usually given to describe companies which run collective
investment funds. Also refers to services provided by others, generally registered with the
"ecurities and <6change 3ommission as ;egistered 4nvestment Advisors. 4nvestment banking
financial services focus on creating capital through client investments.

Eedge fund management ) Eedge funds often employ the services of =prime brokerage=
divisions at maFor investment banks to e6ecute their trades.

3ustody services ) the safe)keeping and processing of the world/s securities trades and
servicing the associated portfolios. Assets under custody in the world are appro6imately
&"G(00 trillion.
01
Insurance[edit]
Main article: Insurance

4nsurance brokerage ) 4nsurance brokers shop for insurance @generally corporate property
and casualty insuranceB on behalf of customers. ;ecently a number of websites have been
created to give consumers basic price comparisons for services such as insurance, causing
controversy within the industry.
0%1

4nsurance underwriting ) $ersonal lines insurance underwriters actually underwrite insurance

for individuals, a service still offered primarily through agents, insurance brokers, and stock
brokers. &nderwriters may also offer similar commercial lines of coverage for businesses.
Activities include insurance and annuities, life insurance, retirement insurance, health insurance,
and property # casualty insurance.

;einsurance ) ;einsurance is insurance sold to insurers themselves, to protect them from

catastrophic losses.
Other financial services[edit]

2ank cards ) include both credit cards and debit cards. 2ank ,f America is the largest issuer
of bank cards.
0citation needed1

3redit card machine services and networks ) 3ompanies which provide credit card machine
and payment networks call themselves =merchant card providers=.

4ntermediation or advisory services ) 'hese services involve stock brokers @private client
servicesB and discount brokers. "tock brokers assist investors in buying or selling shares.
$rimarily internet)based companies are often referred to as discount brokerages, although many
now have branch offices to assist clients. 'hese brokerages primarily target individual investors.
Full service and private client firms primarily assist and e6ecute trades for clients with large
amounts of capital to invest, such as large companies, wealthy individuals, and investment
management funds.

$rivate e?uity ) $rivate e?uity funds are typically closed)end funds, which usually take
controlling e?uity stakes in businesses that are either private, or taken private once ac?uired.
$rivate e?uity funds often use leveraged buyouts @>2,sB to ac?uire the firms in which they
invest. 'he most successful private e?uity funds can generate returns significantly higher than
provided by the e?uity markets

Henture capital is a type of private e?uity capital typically provided by professional, outside
investors to new, high)potential)growth companies in the interest of taking the company to an
4$, or trade sale of the business.

Angel investment ) An angel investor or angel @known as a business angel or informal

investor in <uropeB, is an affluent individual who provides capital for a business start)up, usually
in e6change for convertible debt or ownership e?uity. A small but increasing number of angel
investors organize themselves into angel groups or angel networks to share research and pool
their investment capital.

3onglomerates ) A financial services company such as a universal bank that is active in

more than one sector of the financial services market e.g. life insurance, general insurance,
health insurance, asset management, retail banking, wholesale banking, investment banking,
etc. A key rationale for the e6istence of such businesses is the e6istence of diversification
benefits that are present when different types of businesses are aggregated i.e. bad things don/t
always happen at the same time. As a conse?uence, economic capital for a conglomerate is
usually substantially less than economic capital is for the sum of its parts.

Financial market utilities ) ,rganisations that are part of the infrastructure of financial
services, such as stock e6changes, clearing houses, derivative and
commoditye6changes and payment systems such as real)time gross settlement systems
or interbank networks.

.ebt resolution is a consumer service that assists individuals that have too much debt to pay
off as re?uested, but do not want to file bankruptcy and wish to pay off their debts owed. 'his
debt can be accrued in various ways including but not limited to personal loans, credit cards or
in some cases merchant accounts.
Financial crime[edit]
UK[edit]
Fraud within the financial industry costs the &8 @regulated by the F"AB an estimated I(bn a year
and it is believed a further I2%bn is laundered by 2ritish institutions.
071
Market share[edit]
'he &.". finance industry comprised only (0! of total non)farm business profits in (*+, but it grew
to %0! by 20(0. ,ver the same period, finance industry income as a proportion of -.$ rose from
2.%! to +.%!, and the finance industry/s proportion of all corporate income rose from (0! to 20!.
'he mean earnings per employee hour in finance relative to all other sectors has closely mirrored
the share of total &.". income earned by the top (! income earners since (*50. 'he mean salary in
Dew Jork 3ity/s finance industry rose from G90,000 in (*9( to G570,000 in 20((, while average Dew
Jork 3ity salaries rose from G0,000 to G+0,000. 4n (*99, there were about (2,%00 &.". banks with
less than G500 million in deposits, and about *00 with more deposits, but by 20(2, there were only
,200 banks with less than G500 million in deposits in the &."., and over (,900 with more.
'he financial services industry constitutes the largest group of companies in the world in terms of
earnings and e?uity market capitalization. Eowever it is not the largest category in terms of revenue
or number of employees. 4t is also a slow growing and e6tremely fragmented industry, with the
largest company @3itigroupB, only having a 5! &" market share.
0+1
4n contrast, the largest home
improvement store in the &", Eome .epot, has a 50! market share, and the largest coffee
house "tarbucks has a market share of 52! .