financial services industry

what do financial services do primarily

channel money from those with capital to those who need it

other things financial services do

execution, payment, advisory + management services

3 main long standing centres

NYC, London, Tokyo

3 chinese cities in financial services

shanghai, shenzhen, hong kong

2 european hubs in financial services

frankfurt, paris

emerging hubs

mumbai, jakarta

retail vs professional/wholesale - general

retail: serving individuals

wholesale: serving institutions

retail vs professional/wholesale - equities

retail: traded on-exchange in smaller sizes

wholesale: traded with major banks in large sizes

retail vs professional/wholesale - bonds + FX

retail: accessed indirectly

wholesale: OTC (away from exchanges), large trades

whats the most active global centre for fx and why

london bc time zones we r in the emiddle

5 types of retail services to be aware of

retail banks

pension funds

insurance companies

investment services

financial planning + wealth management

what do retail banks do

keep money

lend money

provide transaction services

what do pension funds do

invest long term to grow pensions for retirement

what do insurance companies do

invest to grow their pot that they can use to pay out in case of whatever the insurance is for

what do investment services do

help retail clients invest

what do financial planning + wealth management funds do

advise a clients whole financial life

4 wholesale sector firm types to be aware of

investment banks

fund managers

brokers

custodian banks

what do investment banks do

floating/listing companies

issuing shares + bonds

M+A

what do fund managers do

manage portfolios and charge a % of assets

who is the largest fund manager centre in the world

the USA

but the UK is the biggest in europe

what do brokers do

arrange trades on behalf of clients

earn commission and/or bid-ask spread

what do custodian banks do

specialise in safe custody - shares, bonds, cash