Slide 5-

a lot of evolution in the Indian financial sector as it is converting to

dynamism, with the emergence of the primary equity market, the process
of demonetization, the concept of internet banking and e-brokerage etc.
Slide 6-
Financial services are concerned with the design and delivery of
financial instruments and advisory services to individuals and corporate
within the area of banking and related institutions, insurance,
investment, real estate, personal financial planning, etc.
It could be summed up that financial services sector consists of the
capital markets, insurance sector and non-banking financial companies
(NBFCs)
Talking about the evolution of FS Earlier in the 1960’s, the banking
services in India included merchant banking that was followed by
insurance and leasing finances in the 1970s. Later on, the mutual funds,
discounting, credit rations, venture capitals came into existence and were
trending till 1990. Post liberalization in 1990, deposits,
dematerialization, paperless tracking, online trading, foreign investors
investing in the capital market, and booking of buildings were the
contemporary issues till 2002.
The financial services sector in India, which accounts for 6 percent of
the nation’s GDP, is growing rapidly. Although the sector consists of
commercial banks, development finance institutions, nonbanking
financial companies, insurance companies, cooperatives, mutual funds,
and the new “payment banks,” it is dominated by banks, which holds
over 60 percent share.
In financial year 2019, total funds raised stood at Rs 19,900 crore (US$
2.85 billion)
India has scored a perfect 10 in protecting shareholders' rights on the
back of reforms implemented by Securities and Exchange Board of India
(SEBI) in World Bank's Ease of Doing Business 2020 report.

Slide 7-
Transforming risk (reducing it through aggregation and enabling it to
carry by those more willing to bear it)

Slide 8-
The financial services industry is a highly volatile sector, which
immediately gets affected by various reasons: be it technology,
government regulations, fiscal and monetary policies, trade relations, tax
changes, etc.
The fund based services concerns with primary market activities,
secondary market activities, foreign exchange activities and specialized
financial services. Ex: leasing, hire purchase, factoring, mutual funds,
credit financing, etc..
The fee based institutions operate in specialized fields to earn income
in any form of fees, commission, brokerage etc. ex: issue management,
portfolio management, corporate conseling, credit rating, letter of credit.
Slide 11-
• Hire-purchase finance companies facilitate consumers in the
purchase of consumer goods while lease companies facilitate
traders in the purchase of capital goods. Hence, they come under
facilitating type.
• Merchant bankers promote investment by helping investors in
fulfilling various formalities such as issue of shares and
debentures. They also advice the promoters on the quantum of
capital to be raised through issue of different types of securities.
Promoters, investors, public, foreign investors and government are
linked by certain companies such as merchant bankers. They not
only link these people but also ensure that each one is satisfied
with his/her return on investment. The merchant bankers act as the
brain in coordinating the various entities.
• Promoting new ventures is taken up by the venture capital
companies. Underwriters also help in the sale of securities which
promote companies. The bankers also help entrepreneurs through
project finance. Hence, they all come under promotion type.
• For those investors who do want to take risks yet but want to
ensure a reasonable return for their investment, mutual fund
companies are the best source which come under this type of
financial services.
• For the purpose of increasing the sales, both domestically and
abroad, factors play a major role in financing the traders by
financing a major part of the value of the traded
goods. Forfaiting companies do the same while selling goods
across the borders.
 • Financial services which provide credit to consumers will come
under this category. Credit card companies and even hire purchase
companies come under this category.
• In order to enable the public to know the financial strength of
companies before investment, we have credit rating companies
which provide ratings on the basis of the performance of the
companies from various aspects. Thus, the strength of companies
is known beforehand which will not only help the companies to get
more finance but also to improve their performance in course of
time.

Slide 12-
India has a diversified financial sector undergoing rapid expansion, both
in terms of strong growth of existing financial services firms and new
entities entering the market. Many emerging trends in financial services
sector like digital payment, security, robo-trading, artificial
intelligence, is helping financial institutions in providing innovating
solutions.
[1] PAYMENTS:
include mobile payments, streamlined payments, integrated billing,
next generation security, mobile money, cryptographic protocols
and p2p transfers. New consumer functionalities are being built on
existing payment systems and will result in meaningful changes in
customer behavior. Also the greatest potential for crypto currencies may
be to thoroughly streamline the transfer of value, rather than as store of
value.
[2] MARKET PROVISIONING:
include machine accessible data, artificial intelligence / machine
learning, big data, fixed income platform, funds / fund of funds,
private equity / venture capital shares, private company shares and
commodities & derivative contracts. As the popularity of high
frequency trading declines, the focus of algorithmic trading may shift to
smarter, faster response to real-life events. And new information
platforms are improving connectivity among market constituents,
making the markets more liquid, accessible, and efficient.

[3] INVESTMENT MANAGEMENT:

include social trading, automated advice & wealth management,
retail algorithmic trading, process-as-a service, advanced analytics,
natural language and capability sharing. Robo-advisors are
improving accessibility to sophisticated financial management and
creating margin pressure, forcing traditional advisors to evolve. Also,
the scope of externalizable processes is expanding, giving financial
institutions access to the new levels of efficiency and sophistication.

[4] INSURANCE:
includes disaggregated distribution, sharing economy, 3rd party
capital, smarter & cheaper sensors, internet-of-things, wearables,
standardized platforms and self-driving cars. Emergence of online
insurance marketplaces and homogenization of risks will force big
changes in insurers’ strategies. And, Ubiquity of connected devices will
enable insurers to highly personalize insurance and proactively manage
clients’ risks.

[5] DEPOSITS AND LENDING:

include P2P lending, lean & automated processes, alternative
adjudication, virtual banking 2.0, banking as platform (API) and
evolution of mobile banking. New entrants will make meeting
customer demands more important, creating an imperative for banks to
reconsider their roles. Also, new lending platforms are transforming
credit evaluation and loan origination as well as opening up consumer
lending to nontraditional sources of capital.

[6] CAPITAL RAISING:

includes empowered angel investors and alternative adjudication.
Crowd funding platforms are widening access to capital raising
activities, making the overall ecosystem richer.