The financial services offered by firms in India

The financial services industry in India has seen massive growth over the past few years, and it just keeps on going. This is also due to the increase in demand drivers such as higher disposable incomes, customized financial solutions, etc. and supply drivers including new service providers in existing markets, new financial solutions and a vast array of new products. And so, the finance companies in India have massive availability of business through the financial services industry comprising of several key subsegments. 

The services are provided to a diverse client base that involves individuals, private businesses and public organizations. 

 

Out of all the services offered, the key 4 ones include - 

• Banking  

Banking forms the backbone of the financial service sector of the country. With 12 public sector banks and 95,000+ urban/rural cooperative banks, the financial services offered include individual banking (savings accounts, debit and credit cards etc.), business banking (merchant services, treasury services, business accounts etc.) and loans (business loans, personal loans, home loans etc.).

• Wealth management

The financial services administered within this section of service involves managing and investing customers’ wealth across various financial instruments- including debt, equity, asset and liability management, insurance products, derivatives, structured products, commodities.

• Mutual Funds 

These service providers offer professional investment services across funds that are composed of different asset classes, primarily debt and equity-linked assets. Mutual funds are generally cheaper to buy into, compared to the stock market and debt products. Consequently, this investment plan has witnessed double-digit growth in assets under management over the last five years, owing to its popularity as a low-risk wealth multiplier.

• Insurance 

Insurance helps safeguard individuals and organizations against unforeseen accidents and circumstances. The services offered in this segment are generally around two categories, general insurance (automotive, medical, home etc.) and life insurance (pension plans, term-life etc.).