Chapter 01 - An Overview of the Changing Financial-Services Sector
CHAPTER 1 AN OVERVIEW OF THE CHANGING FINANCIAL-SERVICES SECTOR
Goal of This Chapter: In this chapter you will learn about the many roles financial service providers play in the economy today. You will examine how and why the banking industry and the financial services marketplace as a whole is rapidly changing, becoming new and different as we move forward into the future. You will also learn about new and old services offered to the public.
Key Topics in This Chapter • • • • • •
Powerful Forces Reshaping the Industry What Is a Bank? The Financial System and Competing Financial-Service Institutions Old and New Services Offered to the Public Key Trends Affecting All Financial-Service Firms Appendix: Career Opportunities in Financial Services Chapter Outline
I.
Introduction: Powerful Forces Reshaping the Industry
II.
What Is a Bank? A. Defined by the Functions It Serves and the Roles It Play: B.
Banks and their Principal Competitors
C. Legal Basis of a Bank D. III.
Defined by the Government Agency That Insures Its Deposits
The Financial System and Competing Financial-Service Institutions A. Roles of financial system B. The competitive challenge for banks C. Leading Competitors with banks • Savings Associations • Credit Unions • Money Market Funds • Mutual Funds • Hedge Funds 1-1