What is Financial Services ? (Meaning, types, Characteristics and Limitations)

What is Financial Services ?

 (Meaning, types, Characteristics and Limitations)

What is Financial Services ?

Meaning of Financial Services :-

Financial services refers to the activities of financial intermediaries relating to conversion of savings into investments. intermediaries includes Merchant Bank, Bank, brokers etc.

Kinds of Types of Financial Services :- 

1. Merchant banking. 

2. Factoring.

3. Fortaiting.

4. Mutual funds.

5. Venture capital. 

6. Lease financing.

7. Credit rating. 

8. Housing Finance.

9. Custodian services. 

10. Securitization. 

Characteristics of Financial Services :- 

1. Intangible.

2. Direct sale. 

3. Fluctuation in demand. 

4. Protect customers interact. 

5. Geographical dispersion. 

6. Information based.

7. Require quality labour. 

Limitations of Financial Services :- 

1. Shortage of competent labour. 

2. Lack of data. 

3. Lack of awareness. 

4. No risk management. 

5. Lack of transparency. 

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