In today’s financial landscape, managing your personal and business finances offers a multitude of options.
The term “financial services” is buzzing across Commercial Banks, Investment Banks, Finance Companies, and the Insurance sectors. But what exactly is this talk about money? Money, in its various forms, encompasses physical currency like notes and coins, credit/debit cards, loyalty and rewards programs, and even digital wallets that exist purely in the virtual realm.
In the past, traditional forms of money were crafted from precious metals like gold, copper, and silver. Alternatively, goods were exchanged as a valuable commodity — a rudimentary version of financial services.
Today, we have a new entrant: crypto currency. This digital currency has spawned an entirely separate transaction platform built on cryptographic techniques, enabling secure buying and selling through encryption algorithms. Currently, crypto currencies are accepted as legal tender in some nations and are under consideration in others.
Understanding financial services
Financial service is a broad term encompassing the management of money in its various forms. It represents an economic service provided by licensed institutions, following specific regulations, to both individuals and organisations for handling financial matters.
Banks, financial institutions, insurance companies, accounting firms, stock brokerages, and investment funds all fall under the umbrella of financial services. Their primary goal is to offer advice on how to effectively manage and expand financial portfolios. Each of these institutions typically boasts a diverse product lineup to cater to individual needs in terms of incentives and benefits.
Most commonly, these services are provided by banks, insurance companies, and stock brokerages. Many financial institutions consolidate these services under one roof, such as Development Banks or Wealth Management Organisations.
Benefits
At its core, financial services are designed to support your financial needs and objectives. This sector ranks among the leading professional segments worldwide, highlighting its profitability and desirability among people seeking personal and professional advancement.
The initial step in accessing financial services often begins with opening a bank account, with the aim of conducting transactions and preserving personal wealth.
In today’s digital age, wireless and virtual transactions have become the norm for depositing and moving funds, making bank accounts as essential as mobile connectivity for communication.
Beyond the fundamental task of managing money, financial services offer the added benefits of asset security and the opportunity to access additional funds through collateral or lending schemes tailored to support small and medium-sized enterprises (SMEs) and other specific business ventures. Ultimately, financial management revolves around the decisions individuals make regarding their preferred investment choices.
Obtaining financial services
Beyond simply having a bank account, when you embark on starting a business or expanding your investment portfolio, it’s worthwhile to explore the array of services your bank can provide. Modern banking systems often bundle various financial services, offering you both general and specialised opportunities for growth. In the past, commercial banks had distinct roles: transactional accounts, higher long-term deposits via finance companies or investment banks, rapid cash borrowings from pawning centrs, and vehicle purchases through leasing companies.
Nowadays, many of these services are conveniently consolidated under one roof, streamlining paperwork, processing, and payment structures.
Non-traditional investment opportunities
Understanding the distinction between traditional and modern investment opportunities is crucial when making financial decisions.
At NDB Bank, a personal advisor will guide you through the options, enabling you to make informed choices from their wide range of investment opportunities. These encompass current and savings accounts, money market facilities, fixed deposits, savings planner, reverse planner, certificate of deposits, home loans, personal loans, car leases, business finance, trade finance, and children’s savings schemes.
Jayagamu Sri Lanka offers specialised financial and advisory services tailored for exporters and innovators. Engaging in any of these financial planning schemes will expand your horizons and connect your financial portfolio seamlessly on the Bank’s digital banking platform NDB NEOS, providing real-time updates and complete control over your account.
Regardless of your social standing, everyone›s financial portfolio can be categorised into assets, debt, income, and expenses. Financial services span a wide spectrum, encompassing banking, investment companies, and insurance organisations.
They offer products and services within specific regulatory frameworks unique to each sector. These services create opportunities through various accounts, lending options, and safe investments. Fundamentally, the purpose of financial services is to help you grow and manage what you have.
At a basic level, your banking partner should facilitate current account transactions, offer short-term unsecured loans such as credit cards, provide fixed deposit and savings accounts, and assist with loans, mortgages, and insurance needs.
At an advanced level, a bank can consolidate almost every financial service under one roof, offering a comprehensive suite of solutions.
