The ocean of financial service sector comprises of the following major players who mold the economy of any country. They are as follows
Players in financial services sector
1. Financial service sector comes under the tertiary sector in which banks play a major role. For the growth of financial services industry, banks are led by the central bank of the country followed by commercial banks, co-operative banks, development banks, foreign banks, etc.
2. Hire purchase financier is also a player in the financial service sector as he enables the consumer to buy the product on credit basis.
3. Leasing companies through financial and operating lease ensure the acquiring of assets by producers on a long-term basis at a reasonable charge.
4. Factoring enables the seller to obtain 80% value of sales from the financial companies undertaking factoring services.
5. Underwriters and merchant bankers are additional players who promote not only companies but also ensure dynamic activity in the capital market.
6. Book-builders help companies in allotting shares to different categories of investors.
7. Mutual funds ensure investment by the public and also ensure tax relief to the investor.
8. Credit cards, another important player in the financial services, ensure the circulation of plastic money and enable purchase on credit by the consumer.
9. Credit rating companies play an important role by giving different credit ratings to companies to mobilize public deposits.
10. Housing finance companies and insurance companies also promote investment in the economy as they also form a part of the players in the financial services.
11. Asset liability management company enables mutual funds to undertake proper investment in different types of companies.
12. Finance companies in general and also as a part of non-banking finance companies provide additional funds to the above players so that there is more activity in the economy.
In addition to the above players, the government acts as the umpire and the various enactments as rules for playing a fair game in the field of financial services.