Page 162 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES

Unit 10: Financial Services

The industry also is experiencing a growing demand for customized, personalized services. Notes
Financial institutions that can quickly create personalized knowledge products have a
competitive advantage.
Information offered by the financial services industry tends to have the following characteristics:
1. Financial data tends to be very personal in nature. Customers of financial information are
generally very particular about the exact types of information that they personally need.
2. Financial data must be accessible. Users must be able to find the information they need
quickly.

3. Financial data must be accurate. Mistakes can lead to incorrect or misguided
decision-making, with potentially dire results.
The financial services industry is very competitive. Since financial information is considered a
commodity, many consumers seek out companies that can provide easy access to that information.

Example: A company without a Web portal is at a competitive disadvantage, since
consumers of financial data now expect the option of obtaining their information from the Web.
Therefore, the business challenges facing the financial services industries include:

1. Providing personalized and customized on-demand information
2. Meeting competitive pressures to create new, distinctive, and high-value information
products

3. Delivering accurate information that is current and readily available Solution requirements
and components Solution requirements.
Financial services companies distribute large numbers of documents, each containing a high
density of raw financial data that is extremely important for supporting financial-based decisions.
Consumers of this information are often key decision-makers who need time-critical support
for determining actions and strategies.

Example: The financial publishing industry directly supports homeowners in choosing
a mortgage, investors in choosing stocks, and corporate CEOs in managing their organisations.

Financial services sector requires an infrastructure that supports the creation of accurate, legally
valid documents in a predictable and timely manner. Finally, the financial services institutions
that can quickly create customized financial products, reports and other personalized knowledge
products have a competitive advantage over other financial services institutions.

10.6 Types of Financial Services

Out of the varied financial services that the financial market offers, the most important ones are
discussed under:

Banking Services

The primary operations of banks include:
1. Keeping money safe while also allowing withdrawals when needed
2. Issuance of checkbooks so that bills can be paid and other kinds of payments can be
delivered by post

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