There are much type of services in the market like entertainment, telecom, food services, tourism, online services and financial services. Among these, financial services are the one which most of the common people seek for. In fact the nature of these services are little different from that of the others. The services which a finance market can provide are called as a financial service. All the organizations which are the part of financial market and provide the customers services related to the management of money are financial institutions. It includes banks, insurance companies, stock brokerages etc.
The investment and money saving services by these organizations are the most common one. It is to be noted that all these organizations work under certain rules and regulations which are framed by the lawful authorities. The violation of these rules initiates law remedies against the wrongdoer. The services by these institutions never shrink to deposit taking, loan or investments, but extend to insurance policies, estate, trust, securities and all kinds of financial market intermediation. The nature of the services includes the proximity to risk and the pressure of market and regulatory bodies. However, the motive of the financial organizations is to increase the value of the money of the shareholder.
The advantages and disadvantages of competition are also present in the financial market. But, due to this the companies are forced to cut down the costs which in turn reduces the customer choice. More the complexity of the product more the risk involved. Higher the risk, higher the returns! This is the principle which holds the financial markets. The regulations from different concerned authorities are also a reason which curtails the reach to public by increasing the supremacy and accountability. The success companies are those who can convert the challenges to opportunities to growth by sharpening the efficiency of services.