WHAT IS BUSINESS FINANCE?

 Business finance, the management of assets and

money, is crucial for any company. Its primary focus
is to increase profit and minimize financial risks.
Business finance covers a multitude of diverse
occupations, such as in global finance, budget
analysis, portfolio management and financial
forecasting.
WHO IS A FINANCIAL MANAGER?
 Financial managers are responsible for
the financial health of an organization. They
produce financial reports, direct investment
activities, and develop strategies and plans for the
long-term financial goals of their
organization. Financial managers work in many
places, including banks and insurance companies.
DUTIES OF A FINANCIAL MANAGER
 Reviewing financial reports
 Monitoring accounts

 Preparing activity reports

 Financial forecasts

 Find ways to improve profitability

 Analyze markets for business

opportunities, such as expansion,
mergers or acquisitions.
ROLE OF FINANCIAL INSTITUTIONS
 To provide liquidity to the economy
 Permit a higher level
of economic activity than would
otherwise be possible.
TYPES OF FINANCIAL INSTITUTIONS AND
THEIR ROLES

Commercial Banks
Investment Banks
Insurance Companies
Brokerages
Nonbank Financial
Institutions
COMMERCIAL BANKS
A bank that offers services to the general public
and to companies.
 Examples: BDO Unibank, Metropolitan Bank,
Bank of the Philippine Islands
INVESTMENT BANKS
 An investment bank (IB) is a financial
intermediary that performs a variety of services.
Investment banks specialize in large and complex
financial transactions, such as underwriting,
acting as an intermediary between a securities
issuer and the investing public, facilitating
mergers and other corporate reorganizations, and
acting as a broker and/or financial advisor
for institutional clients.
INVESTMENT BANK EXAMPLES
INSURANCE COMPANIES
 A business that provides coverage, in the form of
compensation resulting from loss, damages,
injury, treatment or hardship in exchange for
premium payments. The company calculates the
risk of occurrence then determines the cost to
replace (pay for) the loss to determine the
premium amount.
EXAMPLE OF INSURANCE COMPANIES
EXAMPLE OF INSURANCE COMPANIES
 Sun Life of Canada
 Philippine AXA Life Insurance, Corp.

 Pru Life Insurance Corp.

 BPI-Philam Life Assurance Corporation

 BDO Life Assce. Co., Inc.

 Manulife Philippines

 United Coconut Planters Life Assurance Corporation

 Insular Life Assurance Company, Ltd.

BROKERAGES
 A brokerage company’s main duty is to be a
middleman that connects buyers and sellers to
facilitate a transaction. Brokerage companies
receive compensation by means of commission
once the transaction has successfully completed.
For example, when a trade order for a stock is
executed, an investor pays a transaction fee for
the brokerage company's efforts to complete the
trade.
EXAMPLES OF BROKERAGES
NONBANK FINANCIAL INSTITUTIONS
Are not technically banks but
provide some of the same
services as banks.
Examples : Savings and Loans
Associations, Credit Unions,
Shadow Banks
 On a 1 half sheet of Paper, discuss
the difference of a financial manager
in an organization among the other
kinds of managers that you are
aware of.
Explain the flow of funds within
an organization – through and
from the enterprise
Group Presentation