There are many different financial services companies that provide a wide variety of services. Some offer everything from Accounting and Tax preparation to investments and Insurance. Many financial services companies are conglomerates. These companies are often engaged in more than one type of financial service, such as wholesale and retail banking. In some cases, they can provide a wide variety of services for a lower cost than the sum of their parts.
Accounting
Accounting is a vital function for any business. It involves measuring and recording financial activities, transforming information into reports, and communicating the results to decision makers. There are two primary types of accounting. The first is financial accounting, which generates financial statements used by external decision-makers, such as lenders and creditors. The second type, managerial accounting, uses the same data for internal purposes, such as forecasting and budgeting.
Tax preparation
Tax preparation is an important financial service that can be added to the skill sets of many financial service providers. While many people think that tax preparation requires a CPA or an accounting degree, this is not the case. Rather, the highest designation in the tax industry is an IRS Enrolled Agent.
Investments
Investments in financial services have been an attractive area of interest for private equity and venture capital funds in recent years. With improving technology and ever-changing legislation, this sector is ripe for innovation. Financial services focused venture capital has become a growing trend, with entrepreneurs seeking to take advantage of the ‘Fin-Tech’ niche. The growing financial services industry in India has triggered new venture capital interest in the region.
Insurance
Insurance services provide protection for a variety of different types of people and businesses. Some of these services protect against injury and property loss, while others protect clients from liability and lawsuits. Two major types of insurance services are life insurance and property insurance. Another type of insurance service is reinsurance, which protects insurers from catastrophic losses.
Payments
Payments are an important part of the financial services industry. But there are numerous reasons why they may be declined. For example, they may be limited by law in some jurisdictions to protect those who cannot afford to pay. And, when a payment is declined, it can have serious consequences. Studies have shown that more than 60% of financial services customers will not try to repeat the transaction, and this can cost businesses a lot of revenue.
Non-traditional banks
As a non-traditional bank, you should invest in improving your current products and involving your clients in the service delivery process. Most respondents surveyed thought non-traditional banks’ fees were lower than those of traditional banks, so it is important for bank managers to consider the fees charged by non-traditional banks before increasing their own.
CRM software
CRM software for financial services provides many benefits to the financial industry. It not only improves sales and customer retention, but it also provides a comprehensive view of client interactions. This helps you understand what each client wants and need. It also allows you to better cross-sell products and services, as well as deliver personalized offers based on their profile. Besides, it helps you control risk and boost profitability.
Loan loss provisioning
Loan loss provisioning is the process by which banks set aside a portion of their expected loan repayments in case someone defaults. This process protects the bank’s cash flow, which is necessary to provide services to other borrowers and depositors.