07-11-2012, 01:20 PM
Marketing of Financial Products and Services (MFPS)
1Marketing of Financial.ppt (Size: 1.13 MB / Downloads: 52)
What are financial services?
Financial service is any service or product of a financial nature that is traded in financial markets.
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, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises.
Type of Institutions
Marketing financial services is an activity that is shared by the following types of institution (Cheverton et al. 2005):
Retail, corporate, investment and private banks
Mutual funds, investment trusts
Personal and group pensions
Life and general insurance and reinsurance companies
Credit card issuers
Specialist lending companies
Stock exchanges
Leasing companies
Government saving institutions
Brokers and agents
Banking services
The primary operations of banks include:
Keeping money safe while also allowing withdrawals when needed
Issuance of checkbooks so that bills can be paid and other kinds of payments can be delivered by post
Provide personal loans, commercial loans, and mortgage loans (typically loans to purchase a home, property or business)
Issuance of credit cards and processing of credit card transactions and billing
Issuance of debit cards for use as a substitute for checks
Allow financial transactions at branches or by using Automatic Teller Machines (ATMs)
Provide wire transfers of funds and Electronic fund transfers between banks
Foreign exchange services
Foreign exchange services are provided by many banks around the world. Foreign exchange services include:
Currency exchange - where clients can purchase and sell foreign currency banknotes.
Foreign Currency Banking - banking transactions are done in foreign currency.
Wire transfer - where clients can send funds to international banks abroad.
Other financial services
Intermediation or advisory services - These services involve stock brokers (private client services) and discount brokers. Stock brokers assist investors in buying or selling shares. Primarily internet-based companies are often referred to as discount brokerages, although many now have branch offices to assist clients. These brokerages primarily target individual investors. Full service and private client firms primarily assist and execute trades for clients with large amounts of capital to invest, such as large companies, wealthy individuals, and investment management funds.
Venture capital is a type of private equity capital typically provided by professional, outside investors to new, high-potential-growth companies in the interest of taking the company to an IPO or trade sale of the business.