by abhay sehwag

1. Marketing of Financial
Products and Services (MFPS)
MANISH SHARMA
ASSISTANT PROFESSOR
TRINITY INSTITUTE OF PROFESSIONAL STUDIES

2. 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.

4. Types of financial services

5. Financial Services that Need Marketing
Banking Services
 Credit Cards
 Debit Cards
 Saving Accounts and Different type of Loans
Mutual Funds
Insurance Products
 Life
 Non-Life
Pension Funds

6. Other Financial Services
Share Dealing Services
Portfolio Management Services
Foreign Exchange Services
Intermediation or advisory Services

7. 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

8. 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

9. Banking services cont.
 Facilitation of standing orders and direct debits, so payments for bills
can be made automatically
 Provide overdraft agreements for the temporary advancement of the
Bank's own money to meet monthly spending commitments of a
customer in their current account.
 Provide internet banking system to facilitate the customers to view and
operate their respective accounts through internet.
 Provide Charge card advances of the Bank's own money for customers
wishing to settle credit advances monthly.
 Provide a check guaranteed by the Bank itself and prepaid by the
customer, such as a cashier's check or certified check.
 Notary service for financial and other documents
 Accepting the deposits from customer and provide the credit facilities
to them.

10. 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.

11. Insurance
 Insurance brokerage - Insurance brokers shop for insurance (generally
corporate property and casualty insurance) on behalf of customers.
Recently a number of websites have been created to give consumers
basic price comparisons for services such as insurance, causing
controversy within the industry.
 Insurance underwriting - Personal lines insurance underwriters
actually underwrite insurance for individuals, a service still offered
primarily through agents, insurance brokers, and stock brokers.
Underwriters 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.
 Reinsurance - Reinsurance is insurance sold to insurers themselves, to
protect them from catastrophic losses.

12. 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.

13. Other financial services
 Angel investment - An angel investor or angel (known as a business
angel or informal investor in Europe), is an affluent individual who
provides capital for a business start-up, usually in exchange for
convertible debt or ownership equity. A small but increasing number of
angel investors organize themselves into angel groups or angel
networks to share research and pool their investment capital.
 Debt resolution is a consumer service that assists individuals that have
too much debt to pay off as requested, but do not want to file
bankruptcy and wish to pay off their debts owed. This debt can be
accrued in various ways including but not limited to personal loans,
credit cards or in some cases merchant accounts. There are many
services/companies that can assist with this. These can include debt
consolidation, debt settlement and refinancing.