Financial Service Product

A Financial Service Product is a service product that provides financial service functionality to address specific financial needs of individual clients and organizational clients.

• Context:
  • It can typically provide Financial Benefit through financial mechanism implementation.
  • It can typically address Financial Need through financial solution provision.
  • It can typically manage Financial Risk through risk mitigation structure.
  • It can typically generate Financial Return through investment allocation process.
  • It can typically facilitate Financial Transaction through payment processing system.
  • ...
  • It can often deliver Financial Information through financial reporting mechanism.
  • It can often enable Financial Planning through wealth management approach.
  • It can often support Financial Protection through insurance coverage framework.
  • It can often enhance Financial Liquidity through cash management solution.
  • ...
  • It can range from being a Simple Financial Service Product to being a Complex Financial Service Product, depending on its product structure complexity.
  • It can range from being a Mass-Market Financial Service Product to being a Customized Financial Service Product, depending on its client segmentation approach.
  • It can range from being a Traditional Financial Service Product to being a Digital Financial Service Product, depending on its delivery channel technology.
  • It can range from being a Short-Term Financial Service Product to being a Long-Term Financial Service Product, depending on its time horizon duration.
  • It can range from being a Low-Risk Financial Service Product to being a High-Risk Financial Service Product, depending on its risk-return profile.
  • ...
  • It can have Financial Service Product Fee for service provision compensation.
  • It can integrate with Financial Service Platform for service delivery efficiency.
  • It can connect to Financial Market Infrastructure for transaction execution capability.
  • It can support Regulatory Compliance Framework for consumer protection requirement.
  • ...
• Examples:
  • Banking Financial Service Products, such as:
    • Deposit Financial Service Products, such as:
      • Checking Account Financial Service Product for daily transaction management.
      • Savings Account Financial Service Product for personal savings accumulation.
      • Certificate of Deposit Financial Service Product for fixed-term savings commitment.
    • Lending Financial Service Products, such as:
      • Personal Loan Financial Service Product for individual borrowing need.
      • Mortgage Loan Financial Service Product for home purchase financing.
      • Credit Card Financial Service Product for revolving credit access.
    • Transaction Financial Service Products, such as:
      • Payment Processing Financial Service Product for electronic funds transfer.
      • Foreign Exchange Financial Service Product for currency conversion service.
      • Cash Management Financial Service Product for business liquidity optimization.
  • Investment Financial Service Products, such as:
    • Securities Investment Financial Service Products, such as:
      • Stock Brokerage Financial Service Product for equity market participation.
      • Bond Trading Financial Service Product for fixed income investment.
      • Mutual Fund Financial Service Product for diversified portfolio access.
    • Wealth Management Financial Service Products, such as:
      • Financial Advisory Financial Service Product for personalized investment guidance.
      • Retirement Planning Financial Service Product for long-term savings strategy.
      • Estate Planning Financial Service Product for wealth transfer optimization.
  • Insurance Financial Service Products, such as:
    • Life Insurance Financial Service Products, such as:
      • Term Life Insurance Financial Service Product for temporary death benefit provision.
      • Whole Life Insurance Financial Service Product for permanent coverage with cash value.
    • Property Insurance Financial Service Products, such as:
      • Homeowners Insurance Financial Service Product for residential property protection.
      • Auto Insurance Financial Service Product for vehicle damage coverage.
    • Health Insurance Financial Service Products, such as:
      • Medical Insurance Financial Service Product for healthcare expense coverage.
      • Disability Insurance Financial Service Product for income replacement protection.
  • Alternative Financial Service Products, such as:
    • Digital Payment Financial Service Products, such as:
      • Mobile Payment Financial Service Product for smartphone-based transaction.
      • Digital Wallet Financial Service Product for electronic payment storage.
    • Cryptocurrency Financial Service Products, such as:
      • Crypto Exchange Financial Service Product for digital asset trading.
      • Crypto Custody Financial Service Product for digital asset safekeeping.
  • ...
• Counter-Examples:
  • Physical Retail Product, which provides tangible good delivery rather than financial service provision.
  • Non-Financial Service, which addresses non-financial need instead of financial requirement satisfaction.
  • Financial Institution Internal Process, which supports operational function rather than being offered as a client-facing financial service product.
• See: Service Product, Finance Product, Financial Institution, Banking Product, Commercial Banking Service, Investment Product, Insurance Product, Financial Services Industry.

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References

2015

• (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/financial_services Retrieved:2015-7-7.
  • Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit card companies, insurance companies, accountancy companies, consumer finance companies, stock brokerages, investment funds, real estate funds and some government sponsored enterprises.

    As of 2004, the financial services industry represented 20% of the market capitalization of the S&P 500 in the United States. The U.S. finance industry comprised only 10% of total non-farm business profits in 1947, but it grew to 50% by 2010. Over the same period, finance industry income as a proportion of GDP rose from 2.5% to 7.5%, and the finance industry's proportion of all corporate income rose from 10% to 20%.

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