FINANCIAL SERVICES

BY: A1 GROUP

GROUP INVOLVEMENTAnushree Dhanorkar – 7 Sujit Kumar – 7Bhavesh Rasal – 7 Sagar Bhawar – 7 Vipin Singh – 6Nitesh Shelke – 6 Govind Kumar – 5Sujay Hiwale – 0Nikita Agrawal – 7Surendra Bhosale - 5

INTRODUCTION Facilities such as saving accounts, checking accounts,

confirming, leasing, and money transfer, provided generally by banks, credit unions, and finance companies.

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.

Defining 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 Party or by a public body that exercises regulatory or supervisory authority delegated by law.

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.

Financial services

Capital Markets Insurance NBFC’s

ASSET MANAGEMENT

BROKING

WEALTH MANAGEMENT

INVESTMENT BANKING

ASSET FINANCE COMPANY

INVESTMENT COMPANY

LOAN COMPANY

LIFE

NON- LIFE

MAJOR PLAYERS IN INDIA

SBI Capital Markets Limited Bajaj Capital Limited Birla Global Finance Limited Housing Development Finance Corporation PNB Housing Finance Limited ICICI Group LIC Finance Limited L & T Finance Limited

MAJOR GLOBAL PLAYERS

FISHER INVESTMENTS SUSQUEHANNA INTERNATIONAL GROUP GOLDMAN SACHS AMERICAN EXPRESS GENERAL ELECTRIC MERRILL LYNCH T. ROWE PRICE

Innovation Cross-utilization of channels to expand reach of financial services Product innovation is leading to healthy growth in Insurance and NBFCs

Policy supportNRFIP aims at providing comprehensive financial services to at least 50 per cent of financially excluded rural households by end-2012 and the remaining by 2015Government has set up Financial Inclusion Fund and Inclusion Technology Fund to support financial inclusion

Contribution to Indian economy

REGULATORY AUTHORITY

RESERVE BANK OF INDIA SECURITY EXCHANGE BOARD OF INDIA FORWARD MARKET COMMISSION IN

INDIA INSURANCE REGULATORY AND

DEVELOPMENT AUTHORITY IN INDIA PENSION FUND REGULATORY AND

DEVELOPMENT AUTHORITY

SIGNIFICANT EVENTS

Present market scenario of Financial planning services in India - In emerging phase... No regulator, No act, only professional body FPSB India is present for CFP ( Analysis by Financial planner )

Presently in India, in case you want to sell financial products like mutual funds, Insurance you need to have appropriate license/certification from regulators like SEBI/AMFI, IRDA etc. 

Many such license holders have started promoting themselves as Financial Planner without any financial planning certification/s, education, as there is no regulation, government  body, or act in India (which can be observed in above picture ) to promote financial planning service.

CONTINUED…

Professional body - FPSB India has brought CFP certification in India, which is known as gold standard in financial planning globally. 

Just for information to get CFP certification ( 5 modules - Insurance planning, Retirement planning & employee benefits, Investment planning, Tax & estate planning, Advanced financial planning ), one has to spend nearly Rs.50,000 for education & examination.

 One of the diversified financial service company of U.S. ( having revenue of Rs.60,000 crores ) have also started operation in India (Jan-2012) to offer Financial planning and advisory services.There target clients are having income of Rs. 20 lacs and Rs. 60 lacs. They serve client who can save from Rs.5 lacs to Rs. 1 crore! There revenue streams are fees plus commission.

CURRENT TRENDS

INSURANCE SECTOR

MUTUAL FUNDS

NBFC’S

New distribution channels like bancassurance, online distribution and NBFCs have widened the reach and reduced the operational costs The life insurance sector has witnessed the launch of innovative products such as Unit Linked Insurance Plans (ULIPs)

India’s AUM has grown at 15.6 per cent CAGR over FY07-12;total AUM stood at USD138 billion as of March 31,2012 In FY09, SEBI removed the entry load to bring about more transparency in commissions, and thereby encourage longer-term investment

NBFCs have been serving the unbanked customers by pioneering into retail asset backed lending, lending against securities and microfinance NBFCs are aspiring to emerge as a one-stop shop for all financial services

SWOT ANALYSIS STRENGTHS

1) Greatest strengths are the human resources.2) Efficient teamwork, partnership and joint efforts.3) Well-managed workforce who have domain knowledge

WEAKNESS1) Lack of bolt trading facilities in certain branches.

2) Not having adequate number of computers to do

SWOT ANALYSIS

Opportunities1) Booming stock market2) Rise in peoples disposable income3) High penetration of private players4) Use of technology

• Threats1) Poor financial literacy2) Rising crude price3) Poor accessibility to financial sector

OPPORTUNITIES Two-third of India’s population lives in rural areas where financial

services have made few inroads so far. Rural India, however, has seen steady rise in incomes creating an increasingly significant market for financial services

There are several stand-alone networks of SHG, NGO’s, MFI’s in different parts of rural India. Cross-utilisation of these channels can facilitate faster penetration of a wider suite of financial services in rural India

Increasing use of technology to reach rural India is the paradigm-shifting enabler. Internet kiosk based channels are expected to become the bridge that connects rural India to financial services

CONTINUED…

Rural credit segment is a large market, which can be tapped by ensuring timely loans which are critical to agricultural sector

Self Help Groups and NGOs are useful vehicles to make inroads into rural India Safe investment options have a potential to tap into rural household savings

Safe investment options have a potential to tap into rural household savings

Some private players are coming up with innovative products like third-party money market mutual funds to cater to rural investment needs

Agricultural, livestock and weather insurance are potentially large markets in rural India

Harnessing existing networks of MFIs, NGOs can speed up the process

India is one of the fastest growing wealth management markets in the world

→The HNWI population in India is young and therefore more receptive towards sophisticated financial products

→In addition to over 50,000 HNWIs with USD200 billion worth of assets, India has over 2.5 million wealthy individuals whose liquid assets are close to another USD500 billionThe regulatory environment for fiduciary duties in wealth management is evolving; players will benefit greatly from quickly adopting new investor protection measures

•Brand building coupled with partnership based model will improve the advisory penetration. Greater focus on transparency will speed up the process

•Investment in required technologies, imbibing state-of-the-art best practices of advisory and creating customized and innovative products will enable growth

Employment Generation

Stock Market, Brokerage House & Mutual Funds Lead Job Providers …….

Financial services outpaced the IT sector in Tier II and Tier III cities in terms of providing maximum jobs to young aspirants.

- ASSOCHAM

The financial services is also the second highest job offering sector among the total top ten sectors in the total 60 cities tracked for the study comprising Tier I, Tier II and Tier III cities. It has contributed a share of 26.35 per cent in providing maximum employment opportunities.

TOTAL % OF JOBS CREATED IN FINANCIAL SERVICE SECTOR - 26.35 % JOBS

THE STOCK MARKET, BROKERAGE HOUSES AND MUTUAL FUNDS - 35.44 % JOBS

INSURANCE SECTOR - 34.22 % JOBS

BANKING SECTOR - 30.34 % JOBS

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