Definition of Nature and Characteristics of Financial Services and Functions of Financial Services Institutions

Nature and Characteristics of Financial Services

    Ø  Service provider and user (individual or firm) are involved in the process of financial services.

    Ø  Financial institutions are acting as intermediaries in the flow of funds.

    Ø  Corporate sector procure public funds smoothly and within the required time with the help of financial services sector.

    Ø  Services are based on customers’ needs.

    Ø  They are consistently dynamic and convincing services.

Functions of Financial Services Institutions

    Ø  They help the firm or corporate not only to raise fund but also for efficient deployment of funds.

    Ø  They help to construct the capital structure of the company.

    Ø  They also do the factoring and forfaiting services.

    Ø  They do both traditional services like financing, bills discounting and contemporary services like e-commerce, securitization of debts etc.,

    Ø  The specialized services like credit rating, venture capital, lease financing, factoring, mutual funds, merchant banking, stock lending, depository, credit cards, housing finance etc., are also provided by them.