what are financial services ?

Financial Service:

           Financial service  constitute an important component of the financial system. It should be remembered that financial service through the network of elements such as financial institutions, financial markets and financial instruments, serve the needs of individuals, institutions and corporate.It is through these elements that the functions of the financial system are facilitated.
            Financial companies include both asset management companies and liability management companies .Asset management companies include leasing ,mutual funds, merchant bankers and issue /portfolio managers.Liability management companies comprise of the bill discounting and acceptance houses.

Objective of financial service:

1.Fund Raising: Financial services help to raise the required fund from a number of investors,individual,institutions and corporate. For this purpose, various instruments of financial are used.The fund are demanded by corporate, individuals etc.
2.Funds Deployment:A wide range of financial services are available in the financial markets which help players to ensure an effective deployment of the funds raised. Financial services assist in the decision making regarding the financing mix.
3.Specialized services:The financial services sector provides specialized service such as credit rating,venture capital financing lease financing,mutual fund, merchant banking,stock lending, depository,credit card,housing finance,book building etc.
4.There are agencies that are involved in the regulation of financial service activities.SEBI,RBI and the department of banking and insurance of the government of India,through a number of legislations, regulate the functioning of the financial service institutions.
5. Economic Growth:Financial service contribute to the speeding up of the process of economic growth in the economy.

Chief characteristics of financial service:

1.Intangibility.
2.Customer Orientation.
3.Inseparability.
4.Dynamism.