- Banking Services
- Financial services
- State of affairs in Global
3.2 Government Reforms
- State of affairs in India
4.2 Government Reforms
Any activities involved in accepting and safeguarding money owned by other individuals and entities and then lending out this money in order to earn a profit is called banking services. And therefore banking service is said to be an end-to-end process ensuring the overall implementation of a financial service. In simple, the banking industry is most concerned with direct saving and lending. Nowadays digital banking service is available on-demand which is operated within a set time-frame. Modern banking in India initiated in the last decade of the 18th century.
STATE OF AFFAIRS IN GLOBAL
Hereby find the overview of banking and financial services industry in worldwide
Regulatory bodies are connected with different firms, and financial activities are never an exception. Independent agencies are designated to oversee different financial institutions’ operations, uphold transparency, and ensure their clients are treated fairly. The assets of the mutual fund industry are worth $190 billion.
- FINRA is the largest independent US regulator that oversees brokerage firms and exchange markets. In 2019 the FINRA launched the Office of Financial Innovation to aid communication between regulators, investors, and financial service providers. OCCis an independent bureau within the US Department of the Treasury designed to regulate all national banks.
Two trends in particular that are driving this digital evolution are as follows
· Gig Economy Workers
Technological advancement in the financial sector, institutions can conduct more thorough risk assessments, which could make serving gig workers worthwhile. Half of the US population is expected to do gig work by 2028, and financial institutions that cater to this demographic could capture a major monetization opportunity.
· Big Tech Companies
Big tech companies, like Apple and Amazon, could grab up to 40% of the $1.35 trillion in US financial services revenue from incumbent banks, according to an Insider Intelligence report. Apple’s launch of the Apple Card could open doors to additional financial tools such as debit cards or PFM applications.
STATE OF AFFAIRS IN INDIA
Hereby find the overview of banking and financial services industry in Indian
The banking supervisor has allowed new entities such as payment banks to be created recently, thereby adding to the type of entities operating in the sector.
The Government of India has commenced several improvements to ease up, regulate and enhance this industry. These measures include
- Beginning Credit Guarantee Fund Scheme for MSMEs,
- Issuing guideline to banks regarding collateral requirements and
- Setting up a Micro Units Development and Refinance Agency (MUDRA).
India is undoubtedly one of the world’s most vibrant capital markets with a combined effort by Government and private sector. India has scored a perfect 10 in protecting shareholders’ rights on the back of reforms implemented by Securities and Exchange Board of India (SEBI).