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Financial Services

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Introduction

Financial Services Introduction to Financial Services Financial Services is a growing industry, which provides for the financial needs of individual consumers and businesses. This unit explores the needs of and products available for both the consumers and businesses. The term financial service covers a wide range of products including accounts for depositing money, loans, savings and investments, pension and financial advice. Financial Services for individual consumers are available from banks, building societies and also from organizations such as supermarkets and insurance companies, over the counter, by telephone or over the Internet. Businesses have financial needs when they start up, expand and carry on day-to-day business activities. These needs include financing, insurance, bookkeeping, payment services, investment and general financial advice. A variety of financial institutions can provide these services banks, insurance and investment companies and firms of accountants. In this assignment I will produce a report which analyses the financial needs of three different types of customers and investigate the ways in which these needs can be satisfied by a range of financial service providers. Two of the customers are personal customers of contrasting types. In this case I will be talking about a graduate from university and parents of two children. I will estimate their likely expenditure and income in the form of a personal budget. In the 2nd task I will recommend how those needs can be met and from which type of financial institution (an assessment of the cost, returns, risks and benefits of the products). To: Business Studies Department of S.G.M Ref: 1122 From: Demet Gocer Date: 02/11/04 Title: Analysis of financial needs of a graduate from university and a married couple both employed with children. Terms of Reference On Monday 7th September 2004 , I was asked to write a report on financial services by the business studies department. This report is written by Demet Gocer, and is based on an analysis of two customers, and an estimate of their likely income and expenditure, in a form of a ...read more.

Middle

Both Martin Cox and the Reynolds family have financial service needs, but one that is pretty obvious is most probably Banks, because they all hold bank accounts for several reasons: * To keep their money safe * Easier method these days to pay off bills And many more benefits. "Living within our means" is a goal we all should strive to achieve. It's absolutely vital when you're between jobs and don't have much savings to tide you over. It means spending only what you have and saving up to buy items that you can't currently afford. It means relying on loans only to pay large ticket items, such as a house or a car like Martin, or the Reynolds family that want to redecorate the house. This means paying credit cards in full each month. They both need to take out a loan in order to buy a new car and to redecorate the house, later on in this chapter I will be making recommendations on how these needs can be met and from which financial institution. There are various types and sources of finance that these customers can use. The banks are the largest providers of finance to all types of businesses. Forms of lending vary from bank to bank, and there are various schemes and procedures when they have to be paid back. A bank will be able to arrange: * Overdrafts * Factoring services * Short and medium term loans * Leasing for equipment purchase and hire purchase * Commercial mortgages * Venture capital Financial advisers Financial advisers are able to recommend products from a variety of providers, If Martin and the Reynolds get financial help they will have more advantage in gaining information to manage their finance. Perhaps the financial adviser would recommend banks etc, with really low interest rates, so they can pay less interest on the money they borrowed, so they will be saving a lot of money. ...read more.

Conclusion

They get a return by having a savings account because the bank puts in up to 13p a month, depending on the amount of money you already have. I recommend Barclays to my customer because it has a low rate of interest if he/ she needs 2 borrow money and it has a high rate of return if he wants to leave money in the bank. Insurance If you drive a car, you must have insurance, but why should the Reynolds family pay more for it than they have to. According to my research at Halifax Car insurance they are committed to providing cover at the lowest possible prices. And Halifax's customers receive a 10% discount, making their prices even lower and customer's savings greater. Their insurance and benefits include: * A free courtesy car while they repair the customers at one of their recommended repairers * 5 year guarantee on repairs carried out by recommended repairers * personal accident cover up to 5.000 pounds * unlimited windscreen repair or replacement by a specialist * 24 hour emergency helpline I would recommend the Halifax car insurance to the Reynolds family, as they get good value for money. Loans The Reynolds family want to take out a loan in order to buy new furniture, I personally would recommend Barclays, as they are already working with them, it will be a easier applying process, as the bank already has a profile of their customers including the Reynolds. You will be amazed at how quick and easy it is to arrange a loan at Barclays, If they apply within their branch they can get a reply within minutes, which means they don't need to wait for the bank to make a decision on providing the loan etc. By going to the branch you could also get financial advice, by talking to a personal banker, which is my advice to them. Depending on how reliable the Reynolds family are, the bank will charge them interest rates. ?? ?? ?? ?? 1 ...read more.

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