Optimize Your Deal Pipeline for Financial Services

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introduction to financial services the financial services industry links those with surplus money to those who need to borrow money savers and borrowers can be individuals companies or the government these key players are linked through banks as well as the trading of equity and bonds depending on their needs retail banks such as Barclays or HSBC are one avenues for raising finance as they offer loans to individuals and companies who require money individuals may need to borrow for a new car to start up a business or to purchase a property businesses may need a loan to help with expansion nationally or internationally or to introduce a new product or service the bank offers the loan and in return charges an arrangement fee as well as interest for lending the required amount for individuals with surplus money the bank provides various savings options in return the saver would receive interest as a reward for saving with the bank the difference between the interest charged on borrowing and the interest paid on savings is the surplus earned the surplus is used to pay various costs and any remaining amount is profit for the bank trading of equities can also bring together those with surplus money investors and those who require it corporates and governments equities also known as shares or stocks and represents ownership in a business equities can be bought and sold on stock exchanges such as the New York Stock Exchange NYC Abu Dhabi Securities Exchange ADX London Stock Exchange LSE an exchange is like a marketplace where buyers and sellers meet to trade in equities the third major way that savers and borrowers are linked in the financial markets is where the borrowers issue IOUs typically known as bonds a bond is an interest-bearing security which entitles the holders to annual interest and repayment at maturity these are covered in more detail in later videos most retail banks such as Barclays or HSBC also have an investment banking division which would be involved in advising corporates how best to raise money whether that's through the issuing of equities or bonds keywords retail banks equities bonds savers borrowers interest charged interest paid [Music]