Comprehensive financial services refer to a package of financial services that financial groups provide customers with two or more products in banking, securities, insurance and other fields on the premise of meeting regulatory requirements. Before 1930s, direct finance and investment banking developed as relatively independent businesses, but commercial banks were closely related to other financial businesses, and there was no artificial division.
In 1930s and 1970s, the Great Depression led to the promulgation of glass-steagall act, which restricted the mixed operation of finance, forcibly separated commercial banks from investment banks, and strictly restricted the mutual penetration of commercial banks, securities, insurance and industry and commerce. After the 1970s, under the impact of economic stagflation, two oil crises and financial disintermediation, a large number of financial institutions went bankrupt or were merged and reorganized, financial competition became increasingly fierce, and the voice of reform rose.
Advantages of integrated financial services
1. Collaboration: Make full use of all resources to achieve collaboration in finance, customers, sales channels, human resources and funds.
2. Scope economy: Cross-selling of financial products makes banks become financial supermarkets, improving operational efficiency and profitability, and better meeting customer needs.
3. Economies of scale: By allocating fixed costs to a wider range of products, we can achieve lower marginal sales costs, increase overall revenue and reduce financing costs for customers.
4. Risk sharing: Through the sharing of financial resources and the coordination and balance mechanism within the group, the risk prevention ability of a single institution can be improved, which is conducive to the stable operation of the financial market. With the continuous integration of financial markets and increasingly diversified customer needs, the securities industry can choose more financial products, more diversified financial services and more free choice space for asset allocation.
Baidu encyclopedia-comprehensive financial services