Characteristics of Financial

Services
Distinct characteristics of financial
services
Intangibility
Inseparability
Perishability
Heterogeneity
Fiduciary relationship
Two-way information flow
Transparency of performance
Uncertainty of outcome
Comparability
 Classification of services
• Classification of services :
• 1) End user :
• a) Consumer – provided directly to individual consumers.Eg:
leisure, hairdressing, laundry etc.

• b) Business –to- business – Provided for business operations.

Eg: printing, consultancy, Advertising agencies etc.

• c) Industrial – Services for plant maintenance, repair,

Installation, project management etc.
• 2) Based on service tangibility :
• a) Highly tangible – Eg : car rentals
• b) Service linked to tangible goods. Eg : Car
sevice , Electronics installation
• c) Highly intangible : Eg :Consultancy,
Education
• d) Major services linked to minor tangible
goods .Eg : Airlines
• 3) a) People based services – High contact
services- high contact with people – Eg :
Education , dental care, consultancy

• B) Equipment based services : Low contact

services – Low contact with people .Eg :
Vending machine, Automatic car wash, ATM
• 4) Based on expertise :
• a) Professional services – Eg: Doctor,Lawyer,
C.A.

• b) Non-professional – Eg : Baby sitting, casual

labour
• 5) Profit Orientation :
• a) Non-profit orientation service – Eg: Church,
temples, old age homes, zoos, museums,
welfare groups .

• b) Profit orientation – Eg : Banks, Airlines, Tour

operators, Hotels
• 6) Customer-employee presence :
• a) Self-service – Presence of customer only
Eg: ATM
• b) Inter-personal services – Presence of both
customer and employee. Eg: Health care,
Education
• c) Remote services – Presence of employee
only . Eg : Insurance Company
Thank You