Banking, Financial services and Insurance is an industry term for companies that provide a range of such financial products/services such as universal banks. Its usually comprises commercial banks, insurance companies, non-banking financial companies, cooperatives, pensions funds, mutual funds and other smaller financial entities.
Banking may include core banking, retail, private, corporate, investment, cards and the like. Financial Services may include stock-broking, payment gateways, mutual funds etc.
This term is commonly used by information technology (IT)/Information technology enabled services (ITES)/business process outsourcing (BPO) companies and technical/professional services firms that manage data processing, application testing and software development activities in this domain.
Banks are facing competition from non-Banking players such as Google, PayPal, retailers, telecom providers and more. This trend is likely to increase in scope and intensity. These fast changing trends create tremendous challenges for Banks to retain their market position and customer base.
Banks usually have two distinct approaches to this new type of business. One approach would be a bank which simply buys an insurance company or an investment bank, keeps the original brands of the acquired firm, and adds the acquisition to its holding company simply to diversify its earnings. a bank would simply create its own brokerage division or insurance division and attempt to sell those products to its own existing customers, with incentives for combining all things with one company.
Banking and financial services industry dons a brand new avatar as the world moves from everything brick and mortar to digital; from large segment-based approaches to more personal and customized strategies; from fixed-time limited products / services to an anytime-anywhere approach across new innovative banking and financial products and services.