The services offered by the finance industry are defined as financial services. This industry revolves around a variety of organizations which deal with money management. Some of these organizations include-
- Credit card companies
- Insurance companies
- Consumer finance companies
- Stock brokerages
- Investment funds
- Government sponsored enterprises
Banks generally offer different kinds of financial services such as-
- Issuance of loans
- credit cards
On the flip side, investment services are another kind of financial service which usually deals with helping entities as well as individuals invest their money in funds, shares or stocks. These services generally provide financial products for investors to purchase like mutual funds.
According to the reports of 2004, the financial service industry characterized twenty percent of the market capitalization of the S & P 500 in the United States. The phrase “financial services” gained immense popularity chiefly because of Gramm-Leach-Bliley Act of the late 1990s. This act helped different US based financial services companies to merge. In general, a financial services company follows two distinctive approaches to this new kind of business. One approach can be a bank that simply purchases an insurance company but keeps the original brands of the acquired company. Apart from the United States, non-financial services are also allowed in the holding company. In such a scenario, every company seems independent and is known to have its own customers.
In case of the second approach, a bank would only create its personal insurance division or brokerage division and go to sell those products to its existing customers and that too with incentives.
Financial services example include-
- Private equity
- Intermediation or advisory services
- Angel investment
- Venture capital
- Debt resolution
- Expert advisory services
Whether you are a banker, financial advisor or provide a financial product, finding your target audience is more about establishing a relationship with them with the help of your marketing efforts than it is about executing a transaction. With the right set of marketing ideas you can establish this bond all the more.