Financial Services

Financial Services

Financial Services are services provided by the finance industry. This includes personal financial services for individual customers and corporate services for institutional or business customers. Personal financial services essentially include banking, credit cards, loans, insurance, and investment related services. It also includes many other customised products and services under the same umbrella. Corporate services are more broader in nature and can range from accounting, mortgage, insurance to investment funds, corporate governance and beyond.

Financial Services Industry Challenges

Financial Services industry has witnessed cultural shift in the way financial institutions work. Up until 1970s, financial institutions were mostly (called) banks and had been into existence for a few hundred years. Then, banking was mostly for the privileged, was based on solid ethos of trust, and was inherently customer relationship based. Over time, the focus shifted from relationship-based culture through industrial hard sell to a transaction-based culture. While this was happening, the financial services industry witnessed free market revolution and globalisation which saw competition becoming cut-throat in the industry. Today, banking (and other financial services) is for everyone, is transaction-based, and is impersonal. Moreover, the operating environment is far more complex with additional factors such as active regulators, government policies and geopolitical landscapes.

In this scenario, it takes more than just a shop and a billboard to do business in financial services industry. As a result, only some financial institutions are able to earn profits while others are under tremendous pressure to be competitive. The players in the industry need a strong data-driven strategy to be profitable and grow in the face of such challenges.

Veravizion Case Study in Financial Services

The Client Objectives

The client was a financial and law services firm in Mumbai specializing in advising clients on legal, financial and secretarial solution. The main objective was to understand corporate governance practices in India across BSE indexed and Nifty-50 companies. As part of that, the client needed help on analysing the impact (in quantitative and qualitative terms) of corporate governance practices on the financial performance of the listed companies including Nifty-50 indices.

Case Challenges

The main challenges was the client understanding of their objectives. Client had only abstract understanding about what they wanted. As a result, we needed to develop and defined the objectives as part of the study.

In addition, there were also some secondary challenges like unstructured data, usage of multiple spreadsheets and inconsistent data across entities.

Key Actions and Results

  • First, understanding about the context of the client study.
  • Definition of the client objectives after considering various perspectives.
  • Preparation of derived financial metrics and ratios from the data and our understanding of the domain.
  • Statistical and Correlation analysis of the original and derived data.
  • Visual presentation and detailed report generation of the data analysed.

The engagement helped clients draw specific correlations in the context of the study. It achieved the stated objectives of the client as per the positive feedback they received from their customers.

Image credits: photo by Chris Li

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