SUMMER INTERNSHIP REPORT ON

GEOJIT FINANCIAL SERVICES LIMITED

By

Ms. A SRUTHI

Regn. No- 190031000764

Submitted to the

MAHATMA GANDHI UNIVERSITY

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Mr. DIBIN K K

ASSISTANT

PROFESSOR

SCMS SCHOOL OF TECHNOLOGY AND

MANAGEMENT ALUVA, COCHIN, KERALA -
683106
SCMS SCHOOL OF TECHNOLOGY AND
MANAGEMENT

ALUVA, COCHIN, KERALA - 683106

CERTIFICATE

This is to certify that the report on internship has been successfully completed by
Ms.

A. Sruthi., Reg. No.190031000764, in partial fulfillment of the requirements for

the award of the Degree of Master of Business Administration during the

academic years 2019-2021.

Date: Dr. SASHI KUMAR G.

PRINCIPAL
CERTIFICATE

This is to certify that the report on summer internship has been successfully

completed by Ms. A Sruthi, Reg. No.190031000764, in partial fulfillment of the

requirements for the award of degree of Master of Business Administration,

under my guidance during the academic years 2019-2021.

Date: Mr. DIBIN K K

INTERNAL FACULTY GUIDE
DECLARATION

I, A Sruthi., Reg. No.190031000764, hereby declare that this internship report is my

original work.

I further declare that this report is based on the information collected by me and has

not previously been submitted to any other university or academic body.

Date: A SRUTHI.
Reg. No.190031000764
TABLE OF CONTENTS

Chapter
No. Title Page No.

One Company/Organisation Profile

1.1 Brief History of the Company/Organisation 2

1.2 Business Process of the Organisation 3

-Products
1.3 Customers of the company/Organisation-Level of 8
Operations

1.4 Competitors of the Company/Organisation 9

1.5 Strategies-Business, Pricing, Management 10

1.6 CSR Activities 13

1.7 Collaborations & Expansion plans 15

1.8 SWOT Analysis of the 16

Company/Organisation

Two An Overview of the Industry

2.1 Brief History of the Industry 22

2.2 Business Processes of the Industry 25

2.3 Market Demand and Supply –Contribution to GDP – 26

Revenue Generation
2.4 Level and Type of Competition-Firms Operating in 28
the Industry
2.5 Pricing Strategies in the Industry 31

2.6 Prospects and Challenges in the Industry 32

2.7 Key Drivers of the Industry 35

2.8 Stalwarts in the Industry 38

Three Industry Analysis

3.1 Porter’s Five Forces Model 43

3.2 PESTEL Analysis 46

Four Discussion
53
4.1 Objective Assessment
55
4.2 Specific Learning Outcome
57
Five Findings

Bibliography 60

Annexure 62
1

ORGANIZATION PROFILE
1.1. History of the Organization

Fig 1. Logo of Geojit Financial Services Ltd.

Geojit Financial Services Limited is an investment services company in India. It’s

headquarters is in Kochi, Kerala. C.J George is the founder, CEO of the company with Ranajit
Kanjilal as partner and thus the firm was named Geojit and co. Geojit was the first company in
India to introduce online-trading facility in the year 2000, first to begin future trading in pepper,
cardamom, gold and silver in India, and in 2010 it became the first company in India to introduce
trading through mobile devices. In 1992. Ranajit Kanjilal left which made it a sole
proprietorship. Further they started their first branch in Muvattupuzha in Ernakulam, Kerala
during 1993 along with another branch in Thrissur, Kerala. By acquiring a stake of 24%, The
Kerala State Industrial Development Corporation Ltd became a part of the company. Geojit
became a public limited company with the name- Geojit Securities Ltd in 1994. During 1995,
they installed their first trading terminal in Kochi after becoming the member of National Stock
Exchange (NSE). After becoming a Depository Participant under National Securities Depository
Limited, they started providing Depository services. Later during 1999, they became a member
of Bombay Stock Exchange and activated BOLT (Bombay Online Terminals). In the year 2001, the
company opened a joint venture in UAE for their NRI clients. Metlife joined hands with Geojit
in 2002 for the marketing and distribution. During the year 2003-2004, the company added 38
branches; 12 in Kerala, 6 in Karnataka, 10 in Tamil Nadu, 1 in Andhra Pradesh and 9 in
Maharashtra. The company then changed their name to Geojit Financial Services Ltd, from
Geojit Securities Ltd.

In 2005, the renowned Indian Equity Investor, Rakesh Jhunjhunwala took a major stake of the
company and joined the board of directors of the company. The same year, they launched Geojit
Technologies for the development of technologies for the financial field. They even launched a
Non-Banking Financial Company, Geojit Credits. In 2012, they launched a QFI (Qualified Foreign
Investment) services and in 2018, “Funds Genie”, an investment and mutual fund advisory
platform. They have expanded their presence through joint ventures and associates across
Dubai, Abu Dhabu, Sharjah, Al Ain, Muscat, Riyadh, Dammam, Bahrain and Kuwait. Vision
and mission of Geojit are:
Vision

To be one of the most trusted and globally reputed financial distribution company.

Values:

 Customer centric
 Transparency
 Meritocracy
 Solidarity

Geojit is also a member of BSE, NSE, CSDL, and NSDL.

In 2018, Geojit won the Stock Brokering Company of the Year Award at the Dhanam Banking,
finance and Investment Summit and Award Night. The same year they have also received
Regional Retail Member of the Year- South Region Award at the NSE Market Achievers 2018.
Geojit have also won NSDL award six times in a row across categories: Top DP in new accounts
opened – Non-Banking Category- 1st position, Best Performer in Account Growth Rate –Top
DPs- 1st position, Top Performer in Active Accounts- Top DPs- 1st Position, Leader in Go Green
Initiative- 1st position. They have also achieved Best Performing National Financial Advisor (in NRI
category) at the 9th edition of award ceremony conducted by UTI Mutual Funds in association
with CNBC-TV18.

1.2. Business Process of the Organization

Geojit has been a leader and pioneer in capital markets. They focuses on
enriching experience of customers in the capital market to offer a wide portfolio of savings and
investments. There are over 10,35,000 clients whose needs are met through different channels.
There are 515 offices, phone services, online services and customer care for supporting the
clients all over the country.

Clients can trade online in derivatives, equities, currency futures, mutual funds and IPO, and
through online banking transfer of fund can be done. Strategic B2B agreements are used for clients
to open a 3- in-1 account for online trading services. South Indian Bank, Andhra Bank, Oriental Bank
of Commerce, CSB Bank, Corporation Bank, Fedaral Bank and The Shamrao Vithal Co Operative
Bank are some of the banks which enables client for this service. Certified Financial Advisors
help clients in making right financial decisions to meet their needs.
The wide range of products and services provided by Geojit include: equities, derivatives,
currency futures, custody accounts, mutual funds, life insurance & general insurance, e-insurance,
IPOs, Portfolio Management services, property services, margin trading and loan against
shares.

i. Equity:
Equity or ordinary share capital, is a long-term source of finance, represents
ownership capital/securities and its owners –equity holder/ shareholder- share the
reward and risk associated with the ownership of corporate enterprises. A shareholder
can exercise, sell in the market and renounce/forfeit his pre-emptive rights
partially/completely. They does not gain/lose from rights issues. Ordinary share
capital is a high-risk-high-reward source of finance for corporate. The shareholders
share the risk, return and control associated with ownership of companies. Since Geojit
is a registered member of NSE and BSE, you can trade in Equity cash and Equity
Derivatives with Geojit using online or offline network. Geojit equity research team is
there for you to give daily research report, weekly research report, latest market
updates and news and intraday stock tips.

ii. Futures & Options

The NSE and BSE have commenced trading in Derivatives Market with Index Futures
being the first instrument. Now both the exchanges provide trading in Index Futures and
Options and Stock Futures and Options. There are 4 types of members in the future
and option segment:

 Trading Members:
They are only eligible to trade, their trades are settled by the Clearing Members.

 Trading cum clearing members:

They are members who are eligible to trade and also settle trades on their own
behalf and also settle on behalf of other trading members.

 Professional Clearing Members:

They are members who are only specialized in the clearing and settlement activities.
They do not trade on their own behalf or on behalf of other members.
 Self-Clearing Members:
Are those who trade and settle only their own trades. Geojit is trading cum
clearing members at NSE .

iii. Margin Trading Funding Scheme

In marginal trading, an investor buys securities by borrowing a portion of the
transaction value and using the securities in the portfolio as collateral. An investor
who purchases securities may pay for the securities fully in cash or may borrow a
part of the transaction value from the brokerage firm.

iv. Loan Against Shares

Geojit Credits Pvt. Ltd. A subsidiary of Geojit Financial Services Ltd. registered as a
Non- Banking Finance Company (NBFC) offers Loans against security of shares. The
facility ids available to all customers of Geojit Financial Services Ltd.

v. Loan Against Commodity Trading

Geojit Credit Pvt. Ltd. offers loans against Pledge of Warehouse Receipt for delivery
at Commodity Exchanges.

vi. Depository
A depository can be compared to a bank. It holds securities such as shares,
debentures, bonds, government securities, units etc. of investors in electronic form.
There are two depositories in India. The National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL). An individual who
deserves to avail the depository services can approach a Depository Participant
(DP). Banks, financial institutions, custodians, brokers or any other entity eligible as
per SEBI Regulations, 1996 can apply to the depository to become a Depository
Participant. As on 31st March 2006, there are 526 Depository Participants in India.
Geojit is a depository participant of NSDL & CDSL. Insvestors can open demat
accounts with NSDL & CDSL through Geojit. One can approach the nearest branch
of Geojit for opening an account. Agreement charges (statutory charges ) along
with Annual Maintenance Charge (AMC) are collected upfront while opening an
account. It takes two to three days to open a demat account. Upon activation of the
demat account,a Welcome
Letter is sent to the customer along with the Delivery Instruction Slip book. DP facilities
offered by Geojit are:

 De-materialization:
Consumers can convert their physical shares into electronic form by surrendering
the shares for dematerialization at the Geojit branch.

 Re-materialization:
Re- materialization enables consumers to convert the dematerialized shares into
physical form

 Repurchase:
This facility helps consumer to submit the units of open-ended Mutual Fund in
case of re-purchase.

 Pledge:
Consumers can pledge securities to avail a loan.

 Transfer:
Consumer can transfer securities from one demat account to another.

 IPOs:
In case consumers have applied for and IPO and receive an allotment then
the securities are transferred directly to their demat account. The same applies
for bonus and right issues.

 Commodity De-mat Account:

If consumers are a commodity player, they may need to open a commodity
de-mat account with Geojit.

 Speed-e:
If consumer register for Speed-e services, then transfer instructions can be
placed online over the internet to pre-notified Clearing Members Pool a/c. This
does away with the need to submit a physical delivery instruction slip.
 Internet Services:
If consumer have access to internet then they can register with Geojit to view
their demat account over the internet. This is very beneficial as consumer can
avail of a host of service at no extra cost. They will be able to view their
holdings, reports, ledgers and will have free access to Geojit’s research
reports at anytime.

 SMS Alert Facility:

The alert messages for debits (transfers) and IPO credits would be sent
to the account holder who have subscribed to this facility. Depository
provides this facility and no charge is levied on DPs for providing this
service to investors.

vii. Commodity
Geojit commodities, a subsidiary of Geojit Financial Services Ltd. is mainly engaged in the
business of commodity future trading. Geojit commodities is a member of:

 National Multi-Commodity Exchange of India Ltd (NMCE)

 National Commodity& Derivatives Exchange Limited (NCDEX)
 Multi-Commodity Exchange (MCX)
 India Pepper and Spice Trade Association (IPSTA)
 Singapore Commodity Exchange (SICOM)
 Dubai Gold Commodity Exchange (DGCX)

Geojit provides information on commodity futures, along with technical and

fundamental analysis online at its website and also through the company’s large
branch network. The company sonducts seminars, distributes free in-house literature
and holds interactive session that help raise awareness on the future market. The
number of participants is continuously on the rise thus leading to increased
volumes and market efficiency. Geojit Commodity offers future trading through
multiple exchanges in varied commodities such as:

 Agri-commodities : oilseeds, soya, groundnut, pulses, rice, wheat, sugar,

spices, rubber, cardamom, coffee, etc.
 Precious metals: gold and silver
 Base metals: steel, aluminium, nickel, zinc, copper, etc
 Energy products: crude oil and furnace oil

viii. Portfolio Management Service

Geojit, a SEBI registered Portfolio Manager offers discretionary portfolio
management services. Geojit has a team of experts who carefully take investment
decision based on the client’s objectives. The Portfolio management team has a
successful track record of more than 10 years in the capital market. The team has access
to Geojit’s strong Equity Research, and Fundamental & Technical Analysis. In this
minimum investment is Rs. 10 lakhs for resident Indians and Rs.25 lakhs for NRI.
Portfolio and NAV are communicated bi-weekly via e-mail. As the stocks are
normally held for medium to long term, the net asset value will be affected by
market volatility.

1.3. Customers of the Organization

Chart .1 New customers till financial year 2018-2019

Geojit have over 10,35,000 clients whose needs are met via network of over 515
offices, internet and customer care center. French multinational bank PNB paribus have
picked up a stake of 34.41% during 2006 for Rs. 207 crore. They are the prominent stake holders
of Geojit along with Kerala State Industrial Development Corporation and Rakesh Jhunjhunwala.
Both Kerala Industrial Development Corporation and Rakesh Jhunjhunwala holds a share of 9%
apart from BNP Paribus, and rest of the share is with the public. Geojit went public by issuing
9,50,000 shares of each to gain access to more capital during October 1995. Shares of the
company were listed in Kochi, Chennai and Delhi stock exchages. The IPO was oversubscribed
by 15 times. The same year they became a member of National Stock Exchange (NSE). And
later in 1999 company took membership in Bombay Stock Exchange (BSE). Now Geojit is
planning to doubling their customer base to 2 million in next 5 years. For that they have also
hiring around 1000 market professionals or relationship managers. There have
been an increase over 1.75 lakh clients in Systematic Investment Plans (SIP) investors over a period
of 8-9 months.

1.4. Competitors of the Organization

Top 3 competitors of Geojit Finacial Services are :

i. Sharekhan

Fig 2. Logo of Sharekhan

It is introduced in February 2000. Sharekhan is India's 3rd largest stock
broker. Sharekhan provides brokerage services through its online trading
website Sharekhan.com and 1800 offices which includes branches & franchises in
over 550 cities across India. Sharekhan has seen incredible growth over last 10+
years though it's very successful online trading platform and the chain of franchises
located in almost every part of India. Sharekhan also has international presence in
the UAE and Oman. They have a market share of 4.2%.

ii. IIFL

Fig 3.Logo of IIFL

IIFL Securities is a stock broker part of IIFL Group, started in 1995. They are known
brand for the quality of its advice, personalized service and the use of cutting-edge
technology. IIFL Securities provide online trading and research based advisory
services for their financial products Stocks, Derivatives, Commodities, Insurance,
FDs, Loans, IPO and Bonds etc

iii. Indiabull

Fig 4. Logo of Indiabulls

Indiabulls Shubh is a discount stock broker offering ultra-low brokerage plans.
Indiabull offeres unlimited trading plans, free trading platforms, free call &trade, free
research and zero interest margin funding. They serves over 7 lakh customers
with a dedicated sales team of more than 900 individuals in more than18 cities.
Indiabulls Ventures provides integrated capital market-related services including
Stock Broking, Equity Research, Demat Account, and Margin Funding.

1.5. Strategies

i. Pricing:

Geojit Pricing for opening and maintenance of account:

 Trading Account Opening Charges (One Time): ₹Nil

 Trading Annual Maintenance Charges (AMC): ₹0
 Demat Account Opening Charges (One Time): ₹100 (for Agreement Stamp Paper)
 Demat Account Annual Maintenance Charges (AMC): ₹400

Geojit charges for brokerage:

a. Cash Market Brokerage

 Delivery-based Trading: 0.30%
 Intra-day Trading: 0.03%

b. Futures & Options Brokerage

 Futures: 0.03%
 Options Intraday: ₹125 per contract
 Options carry forward positions: ₹150 per contract

c. Geojit Other Brokergae Charges

 Minimum Brokerage Geojit: Geojit charges ₹20 per Contract or 1 paisa per
share whichever is higher subject to a maximum of 2.5% per share.

d. Geojit Depository Service Charges

Table 1 Depository service charges

For Resident Retail Customers and Corporates

Particulars Charges

Account Opening Nil

First Year AMC Nil

Annual Maintenance Charges ₹600 (₹450 for customers receiving e-mail

statements)

Transaction Charges - Buy - Market and Nil

Off- Market

Transaction Charges - Sell - For transaction 0.02 % subject to a minimum of ₹15 and
through Geojit maximum of ₹40 per transaction

Transaction Charges - Sell - For transaction 0.02% subject to a minimum of ₹50 and
through other brokers maximum of ₹100 per Transaction
For Resident Retail Customers and Corporates

Particulars Charges

Transaction Charges - Sell - Off Market 0.02 % subject to a minimum of ₹20 and
Trades
maximum of ₹40 per transaction

Pledge Creation ₹50 per transaction

Pledge closure ₹50 per transaction

Pledge invocation ₹50 per transaction

Dematerialisation Charges Nil + Courier charges @ Rs.35/- per request

Rematerialisation Charges Rs.10 for every hundred securities or part

thereof or Rs.10 per certificate

Custody Charges Nil

ii. Business
a. Geojit Trading Software

Geojit BNP Paribas offers an Advanced Online Investment Platform called SELFIE
(Self- Directed Trading & Investment Platform). The Geojit's trading platform
offers Virtual dealer terminal (SEFIE Platinum), WEB and Mobile trading
applications. Geojit BNP Paribas offer stock trading services under two
trading plans:

 SELFIE Gold
SELFIE Gold is a trading website (browser based trading application). This
trading application is offered absolutely FREE to all online customers and
offers uniform
experience across multiple devices. The key feature of SELFIE Gold includes
integrated Security view with quotes, charts, news, recommendations, MBP, F&O
Chains & Order windows all at one place, real time News aggregation
and visualization engine and market intelligence & research calls.

 SELFIE Platinum
SELFIE Platinum platform is a virtual dealer terminal (installable EXE program).
It is designed for active traders. Key features of SELFIE Platinum includes
flexibility to customize screen layout, fast trade execution and Tick by Tick
updation of index chart.

1.6. CSR Activities

The company shall undertake CSR activities incompliance with Rule 4(1) of the
companies Corporate Social Responsibility Rule 2014. The company will be focusing on
education, health, environment and social inclusion. The CSR activities shall be approved by
their respective CSR Committees.

i. Education:
Education is the most powerful and key element in building a society in a
sustainable way. It is considered as the backbone of the society. Geojit is working along
with registeres NGOs as well as Educational Institutions for facilitating basic
education for children who can’t afford it. This also focusing on developing
special skills that will enable them to get employment in a specialized areas. A
total of 542 students got support for education from Geojit last year through NGO,
Rajagiri Outreach. They also provide support to needy students pursuing
professional courses as wellas participated in a Project of providing books & CD’s
on general knowledge to supplement the general studies of students of Government
Schools in Kochi. In 2018, they have provided to 665 under- privileged children in 5
villages of Kerala. There are scholarships named ‘Vidhyadhanam’ scheme to the
most deserving students from financially deprived backgrounds to enable them to
pursue higher and professional education. Under the ‘Student Police Cadet Project’,
support was extended too students to be responsible towards their families,
communities and the environment. The company also associated with the NSE and
CNBC TV 18 in making sure that the Cochin leg of the Investothon.
ii. Health:
The company aims at focusing part of it’s CSR activities for providing health care to
those living in and around the location of Geojit’s offices and are affected by chronic
diseases which include cancer, Alzheimer’s, heart diseases, HIV/AIDS etc. For
obtaining medical treatment for these diseases requires a huge amount for medicines,
treatment, surgeries, etc which will be way beyond the means of most of the people
in our society. Company will provide healthcare support to such people as the
company believes that healthy society is happier and more productive society. They
have supported an organization taking care of Alzheimer patients. Company have also
conducted a campaign to end violence on women and girls for gender justice and
gender equality conducted by the prominent Social organizations in Kochi led by the
Cultural Academy of Peace. The staff have come together to form a blood donors data
bank that has a membership of over 200 blood donors who have contributed to
around 120 people in the last one year.

iii. Environment:
When the pace of urbanization, industrialization and use of resources are
witnessing a steady rise , issues like environmental pollution, water scarcity and
rising temperature, extinction of natural resources are very evident. Conservation of
biodiversity is essential for the survival of human kind, animals and plants. Corporates
with the resources available can undertake measures in a organized manner. Geojit
felt the acute need for supporting the environment through activities such as public
park maintanence. Open parks with recreational facilities are accessible to people
of all age. This have proven to improve the quality of water, quality of air, developing
vegetative buffers, produce habitat for wildlife, and provide a place for kids and family
to connect with nature and recreate outdoors together. Geojit have contributed to the
Uttarakhand flood and Kerala flood. Post the severe disaster, they provided relief and
disaster management to those affected was major. They have also contributed Rs.1.5
Crore towards the CM’s Distress Relief Fund. They have also provided 75% of the
deserving families, basic household goods. The first family to benefit from this
project was from Parakkadavu village, Kerala.

iv. Social inclusion:

Social inclusion is the new buzz-phrase in the current society. It is defined as the process
of improving the ability, opportunity, and dignity of the marginalized, differently abled
people
and senior citizens. Company intend to protect, support and uplift them through
various institutions and NGOs. So that they have a better quality of life. The
company have supported a program named “Vayovandanam” at 5 centres on
International Day of Older Person

1.7. Collaborations & Expansion Plans

Geojit have it’s presence in almost all the major states of India, covering 19 states and
2 Union Territories: Andhra Pradesh, Goa, Gujarat, Haryana, Jammu& Kashmir, Karnataka, Kerala,
Madhya Pradesh, Maharashtra, New Delhi, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh,
Uttarakhand, Jharkhand, Telangana and West Bengal, Pondicherry and Chandigarh. The French
multinational bank BNP Paribas have a major share or 34.41% in Geojit. Apart from that
Kerala State Industrial Development Corporation and the maverick investor Rakesh Jhunjhunwala
hold 9% share each and rest of the share are public. In the year 2016, Aptech Banking and Finance
Academy and Geojit have signed an MOU to train over 10,000 banking and finance professionals
through it’s collaboration programme.

Barjeel Geojit Financial Services, LLC is a joint venture established in UAE during 2001 through a
MoU between Geojit and Barjeel Shares and Bonds LLC of the Al Saud Group UAE. Headquarters of
this joint venture is in Dubai, with branches in Abu Dhabi, Al Ain and Sharjah. The deal is signed
between Sheikh Sultan Bin Al Sooud Al Qassemi and Mr. K V Shamsudheen as founder
Director. It also trade the Dubai Gold & Commodity Exchange (DGCX) apart from stocks,
derivatives, forex, bonds, CFDs across countries such as US, UK, Europe, Canada, Australia,
Hong Kong, and so on.

In 2006, by setting up Aloula Geojit Capital Company, Geojit became the first Indian stock
brokering company to enter into Saudi Arabia and commence capital market operation. It is a
joint venture brokering firm in Saudi Arabia with Al Johar Group. It’s headquarters is in Riyadh
with a branch in Dammam. They provide services such as wealth management, asset management,
corporate finance, brokerage and custody.

BNP Paribas, a French banking group have collaborated with Geojit in 2007 by taking their
stake in company equity which make them the single largest shareholder. BNP Paribas is the
world's eighth biggest bank in terms of assets and have their presence in more than 72
countries. BNP Paribas focus mainly on Retail banking, Investment solution and Corporate&
Investment Banking. Later through a joint venture named BNP Paribas Securities India Private
limited, they offered the full direct market access execution in India for institutional clients in
2008. Subsequently Geojit changed their name to Geojit BNP Paribas Financial Services Limited.
This have benefited Geojit in expanding their customer base, technologies and tools, customer
relation, etc. BNP Paribas became financial investor of Geojit by
exiting their partnership in 2017. As a result Geojit renamed itself as Geojit Financial Services
along with changes in their logo. As on 31 December 2016, BNP had 32.59% stake in the
company which was initially 27.18% in 2007.

In 2011, Geojit BNP Paribas and JZ Associates LLC, Kuwait signed a joint venture agreement with
Bank of Bahrain and Kuwait to form BBK Geojit Securities KSC. It is the first India based equity
brokerage firm in Kuwait for serving NRI clients. BBK (Bank of Bahrain and Kuwait) is one of
the largest private sector bank in Bahrain.

In the same year 2011, Geojit also joined hands with Qurum Business Group and National
Securities Company in Oman to start a joint venture called QBG Geojit Securities LLC. The contract
was signed by Sheikh Abdulaziz bin Ahmed Al Hosni, Vice President and Chairman of QBG and
C J George. It is one of the licensed financial intermediary in Oman dealing in Non-Omani
Securities which includes shares, mutual funds, depository servies, etc.

Geojit launches “Geojit Online Financial Planning”, a user friendly platform which allows clients to
do comprehensive financial planning without an advisor.

“Selfie” is a next generation trading platform which combines several new web technologies to
meet customer’s emerging needs.

Geojit is also planning to expand their customer base to 2 million. For this they are also hiring
more employees for helping their client for making right financial decisions.

1.8. SWOT Analysis

i. Strength :

a) 30 years’ experience in the Indian capital market :

Geojit has over more than 30 years of top to bottom involvement with the
Indian Capital Market. The organization additionally has in excess of 10,35,000
customers, a system of around 460 workplaces and oversees resources worth over
Rs 37,160 crore in Assets Under Management and Custody as on 31 December
2019. This is a genuine impression of the trust rested in our ability,
straightforwardness and our forefront innovation arrangements.
b) International collaboration with BNP Paribas :
Geojit is upheld by solid investors, for example, biggest investor - worldwide
financial major BNP Paribas, and other significant investors, for example, Mr.
C.J.George, KSIDC (Kerala State Industrial Development Corporation) and Mr.
Rakesh Jhunjhunwala.

c) Multichannel services to help customers :

Geojit spearheaded the straightforward idea of furnishing people with the
office to exchange online route back in February 2000. The organization has since
appreciated a first mover advantage in web based exchanging. As an inventive
trend-setter, Geojit utilizes bleeding edge innovation in internet exchanging
to meet customer prerequisites, for example, redid web based exchanging
stages among different services.

d) Wide network:
We have a wide network of around 550 offices across 300 cities with
industry certified executives and a dedicated Call Centre to provide you with
quality services.

e) Around 1 milllion active and loyal clients:

Daily mails conveyed to our customers on economic situations and
recommendations. Our solid research thoughts have been instrumental in changing
over our customers into effective merchants.

f) First mover advantage :

Geojit has the qualification of being a pioneer in the business
 first to dispatch web exchanging the year 2000.
 first to dispatch incorporated web exchanging framework for money and
subsidiary portions in 2002.
 first Indian stock broking organization to start local retail broking tasks
in any outside nation.
 first in the business to have a worldwide player offering its name in this
way making Geojit.
 first to dispatch selective branches for ladies in 2005.
 first to dispatch exchanging through cell phones in 2010.
g) Wide range of products and services:
Geojit offers a wide scope of exchanging and venture items and
arrangements. Ensured financial guides help customers to show up at the
privilege financial answer for meet their individual financial objectives.

ii. Weakness :
a) Low publicity causes lack of awareness among investors:
Since the company is more focused on GCC and India, international awareness is
less compared to their other competitors.

b) Less options for offline customers:

They are more focused on online investments and trading rather than offline mode
of trading. Geojit spearheaded the straightforward idea of giving people the
office to exchange online path back in February 2000. The organization has since
appreciated a first mover advantage in internet exchanging. As an inventive
pioneer, Geojit utilizes forefront innovation in internet exchanging to meet
customer prerequisites.

c) Lack of employees:
In this field the major concern is the knowledge about market and their
financial literacy. The company should hire more people over time as the
market is highly volatile. The employee hired should be capable of predicting this
as well as giving the right financial advices to the customers. They should be able
to convince the customer to buy as well as sell share at right time for the
best price.

d) Lack of reachability in some region:

They are focused only in Middle Eastern region and India. Since financial services
have a huge role in everyone’s life it should be available around the globe
without just focusing on one region. There is also more possibility of success
by penetrating to more regions.
iii. Opportunities :

a) Targetting commerce and finance students:

By focusing on students they can expand their customer base. Commerce and
finance will be financially literate which will make them more interested
towards investing and trading.

b) More customized services like SIP :

A SIP (Systematic Investment Plan) is a Mutual Fund speculation where a
financial specialist puts away little wholes of cash over ordinary periods.
Similarly they can customize service for investing, trading, etc. This will help
in planning investments made in the market.

c) Growing rural market through more economical services:

Currently these services are used in the urban area. By providing seminars
and educational sessions, rural market can also be a part of this financial
service.

d) Global expansion of the brand:

By the help of investors, Geojit can expand worldwide which will increase
the credibility and brand value of the company. Now they are focused on
Middle Eastern countries which is not enough for capturing a world
market. Since they have inverstors like BNP Paribas they can start their firm
in other countries as a joint venture or a Sole proprietorship.

e) Implementing technological services as well as human resources:

Through this research can be made easier. By employing more financial advisors
and stock brokers, teams can be made to look after each form of share. This
will improve the efficiency and accuracy of their predictions as they are
focusing only on a particular market.
iv. Threats :

a) Stringent economic measures by Government, SEBI and RBI:

They are making rules which reduce money related malpractices and
crimes. In a 50-page request, SEBI said Geojit Financial Services had not
settled records of its dormant customers in seven quarters during the
examination time frame. This lead to fine of RS.30Lakh for violating stock
broker norms.

b) Entry of foreign finance firms :

This will increase competition as well as they may take the existing market
share of Geojit which is a threat to its existence.

c) Uncertainty and volatility in the market:

This creates doubt in the investors in investing even though they are
getting recommendations from an advisor after market research.
OVERVIEW OF THE INDUSTRY
2.1.Brief History of Industry
The world financial services market involves the facilitating of services to ease money flow.
The financial service market consist of the revenue of financial or money related service by entities
such as organizations, sole trade and partnership that engage in financial services related
activities such as lending investment management, insurance, brokerages, payments and fund
transfer services. The financial services industry is categorized on the basis of the firms
presence in the industry.

Until 1970s, the financial services industry consisted of few well defined and separate
industries that dealt in money. During 1970s, the profitability of banks declined due in large part to
federal regulations that restricted banks from offering the various products, like insurance, mutual
funds, and stocks, that their less strictly controlled competitors offered. The gradual shift away from
banks as the center of the American financial service industry occurred between 1973 and 1979,
when the Organization of Petroleum Exporting Countries (OPEC) dramatically increased oil price,
leading to double-digit inflation by end of the decade. As a result, investors with saving accounts
receiving 5.25% interest. Coupled with inflation was emergence of investment companies
offering consumers money market mutual funds, which enables the average investor to earn
market-rate interest. Mutual funds were also a safe instrument, as they were invested
primarily in high-interest federal securities and Certificates of Deposit (CDs). Mutual funds grew
as small investors, lured by huge gains in the stock market during the 1980s, sought ways to earn
greater than the rate of inflation. This shift hit American bank hard. In the years between 1977
and 1981, consumers went from investing $3.9 billion to investing $181.9 billion in mutual
funds than putting their money in the bank. Still bank assets continued to decline; in 1960
banks held 34% of the asset of Americans. By 1989 that figure had declined to 26%. During
1980s and 1990s, bank responded to competition by selling money market and mutual funds,
creating mortgage and financing subsidiaries, and introducing a huge network of Automatic
Teller Machines (ATMs)

By the mid- 1990a, many observers believed that the banking industry and other companies
offering financial services were no longer clearly defined, separate entities. Insurance giant
Prudential acquired brokerage house from Prudential-Bache, and such traditional Wall Street
players as Merrill Lynch began to offer accounts that allowed customers to do their banking.
During early 1990s, some believed that the United States was becoming a bankless society,
with such corporations such as the Ford Motor Company, General Electric and General Motors
able to offer loans to businesses and credit to consumers, all financial services previously
reserved for banks and savings and loans.
By 1995, credit cards became increasingly popular with $480 billion in purchases alone. Credit
cards account for 25% of all profits at the ten largest banks in US, but with only 14% of all
merchandise purchased via credit card, there is still room for growth. For credit card
organizations, this industriousness has paid off: Americans charged more than $1 trillion in buys
with their credit cards in the year 2000, more than they went through in real money.

One of the vital crossroads in the financial services industry came during the 1980s with
the disappointment of many investment funds and advance (S&L) organizations. In contrast to the
fall of the securities exchange, the S&L fiasco created significantly more suffering results. An
incomplete clarification for the disappointments originated from the obligation trouble that the
S&Ls conveyed as the aftereffect of offering low-intrigue contracts, at times as low as 3
percent, during the 1970s when expansion was high and intrigue installments to investors
were as much as 12 percent.
Misrepresentation and defilement likewise assumed a job in around half of the
disappointments. A legislature bailout costing an expected $500 billion to $1 trillion actualized
over a time of thirty years was required to pay safeguarded contributors of bombed
establishments.

Presently financial services industry turns out to be all the more quick paced and serious,
innovation will be a significantly progressively significant part of achievement. Presumably more
than some other division of the American economy, financial services rides the peak of
mechanical development.
Account is progressively a twenty-four-hour, seven-day seven days worldwide movement with huge
wholes blazing between business sectors over the electronic interchanges web. The capacity to
quickly decipher the financial markets and envision their development can bring gigantic benefits or
maintain a strategic distance from lamentable misfortunes. With enormous wholes submitted in the
business sectors, financial associations need to figure how much hazard they are tolerating.

India has a broadened financial segment experiencing quick development, both as far as solid
development of existing financial services firms and new substances entering the market. The
segment involves business banks, insurance agencies, non-banking financial organizations, co-
agents, annuity reserves, shared assets and other littler financial substances. The financial
controller has permitted new elements, for example, installments banks to be made as of late
in this way adding to the sorts of elements working in the segment. Be that as it may, the
financial segment in India is dominatingly a financial segment with business banks
representing more than 64 percent of the absolute resources held by the financial framework.
Since notable timeframe India has consistently been an agrarian nation which is principally a
result of its geographic conditions and its assets which has been the interests of different
individuals who have attempted to grab hold of it. The financial segment India goes back with
the foundation of British standard in India. The primary stock trade was
built up in Mumbai in 1875, at that point in Ahmedabad in 1894, Calcutta 1908 and afterward
in Madras in 1937. Despite the fact that Britisher’s plundered our nation and left us in a
hopeless state, they set up a financial framework which had "obviously characterized rules
overseeing posting, exchanging and settlements, a very much created value culture if just among
the urban rich, a financial framework with clear loaning standards and recuperation methods,
and preferred corporate laws over most other recent provinces. The 1956 Indian Companies
Act, just as other corporate laws and laws ensuring the speculators' privileges, were based on
this establishment." After the freedom the strategy producers received for a 'communist'
economy to be polished so as to drive India to the way of advancement. 'Communist' economy
implied that however the private segment will be available yet open segment will be the
significant player in the economy. "The Indian financial framework stayed a moderately free
however unsophisticated market framework till the seventies. This incorporated a private
financial division, divided yet dynamic securities exchanges, dynamic product spot and
prospects markets. The first achievement of India's communism was during the 1950s with the
end of the capital record. More changes came during the 1960s and 1970s, with the
nationalization of financial specialist organizations. This changed the structure of the financial
services industry from a genuinely serious area to one overwhelmed by huge open segment
imposing business models. This period likewise observed the conclusion of ware subordinates
markets. This occurred in the last piece of the 1960s, when these business sectors saw an
enormous number of broker defaults during a time of three successive dry spell years. Toward
the finish of the seventies, the value advertise was the main part of Indian fund that held a
generally private division character. Indeed, even here, the State is accepted to have utilized UTI,
the main shared reserve in the nation, to impact stock costs. Likewise, while auxiliary market
value revelation was generally free, the Controller of Capital Issues (CCI) directed whether,
and at what value, firms.

To keep a check on the working of the financial exchange and furthermore, in 1992 SEBI
(Securities Exchange Board of India) was set up. In spite of the fact that it was set up in 1988
yet in 1992 it turned into a different body. Foundation of SEBI had put a beware of unlawful
exercises, for example, insider exchanging and so on and furthermore gave a suspicion that all is
well and good among financial specialists. It gave a uniform code of control to be trailed by the
trades. It was a significant change that occurred due to the change. SEBI additionally abrogated
'badla' framework which was remarkable to Indian financial exchange which was a method for
settlement among merchants. could offer proposals to individuals by and large.
2.2. Business Process of the Industry
Business processes focuses on how the work is getting done. It enable financial
institutions to design organization, applications, systems and people. This is to identify and
eliminate inefficiencies, optimize cost, ensure compliance and increase productivity. Financial
service providers are also called as financial advisors or financial planners, as they assist
individuals, families and organizations in making right financial decisions. Even though it
seems complex, financial advisors are basically salespeople, and the core business process in
financial services is similar to other sales- oriented businesses. Customer care is at the core of
financial planning, as a huge segment of an advisor's every day schedule comprises of individual
contact with customers and financial institutions. Few of the core business processes are:

i. Research
Financial advisor should know about the features, benefits and limitations of the service
being provided to their client. Financial advisor help in purchasing annuities, life
insurance, money market funds, saving plans, mutual funds and other instruments designed
to grow wealth of their clients. They should be aware of new developments in the industry
and attend certified courses in order to maintain their licenses.

ii. Prospecting
Financial advisors are highly relied on word-of-mouth referrals from their clients to expand
their business at the same time they have to also focus on traditional prospecting techniques.
Financial advisors invest energy "cold pitching" people and associations from bought mailing
records, and may even make face to face requesting to huge organizations. Different
techniques for finding new customers incorporate talking at classes, going to exchange
meetings, and setting notices in distributions focused to higher-pay people or business
chiefs.

iii. Customer Service

When a financial advisor has made sure about a customer, the advisor meets with the
customer to increase an intensive comprehension of the customer's financial circumstance,
speculation objectives and hazard resistance. The organizer utilizes a blend of individual
discussions and formal appraisal instruments to make a customer explicit profile that can be
changed after some time. The planner, either promptly or in a resulting meeting, chooses
various financial item choices that best address the issues, objectives and hazard resilience
of the customer. The planner talks about the one of a kind highlights, charges, charge
suggestions, and necessities of every item, and causes the customer to settle on a choice. The
customer administration job stretches out past
the underlying gathering and deals process. Financial planners meet routinely, at any rate
once every year, with existing customers to give a review of the presentation of their
ventures, outfitting the customer with broad reports specifying the development or
diminishment of their contributed reserves.

iv. Account maintenance

Financial advisors handle the entirety the exchanges between their customers and the
financial institutions offering venture items. Advisors must round out and submit applications
for financial items and by and by forward customers' underlying money stores or rollover
reserves. In the event that a customer wishes to make resulting stores or withdrawals
from their records, the advisor by and by handles the exchange. The advisor is
additionally liable for keeping in touch with financial institutions to get occasional reports
on customers' records, and to encourage any correspondence among customers and the
institutions that hold their records

2.3. Market Demand and Supply- Contribution to GDP – Revenue Generation

The law of demand and supply explains the relation between the availability of a product and
the desire for it. Typically, lower the availability, higher the demand of the item and vice-versa.
This also applies to stock market for determining the price of stocks. The factors that affect the
demand for stocks are monetary information, interest rates and corporate results. Monetary
information uncovers data about the condition of the economy. In the event that the economy is
showing improvement over desires, it makes more interest for stocks fully expecting better
income. Increase in interest rates tends to decrease demand for stock. But when economy is
improving, interest rate will rise automatically which will boost demand for stocks. Shares are
volatile as it is depended on the company’s profit, sales, margin and outlook. While interest for a
stock can spin dependent on market elements, monetary conditions, changes to national bank
approach, and better-than-anticipated (or more terrible than- anticipated) corporate
outcomes, the flexibly of stock will in general change at a frigid pace. Organizations can
diminish their own flexibly of offers by means of stock buybacks or delisting. This is the point
at which the organizations buy their own offers at market costs, resign these offers thus
decline the quantity of existing offers by and large. This prompts more significant expenses
insofar as request doesn't diminish. Delisting frequently happens when an organization defaults on
some loans or goes private.
Fig 5. Contribution of financial services towards economy

Today Indian economy is considered as the quickest developing economies on the planet. Adding to
its high development are numerous basic segments, among which 'financial services industry'
is unarguably one of the most recognized areas of Indian economy. The job of financial industry in
forming fortunes for Indian economy has been much progressively basic, as India since autonomy
needed ability of a strong modern segment. This incited India to rely upon different divisions
for its food. These different divisions generally established of 'financial sector and agriculture
sector'. After financial reforms of 1992 has developed just manifolds to the degree that today it
by and by adds to over 6% of India's GDP. It is the dynamic development of financial services
part during post change age that has helped it in accepting such a significant spot in Indian
economy. Not at all like in past when financial services segment mostly established of banking
part, today financial division has expand its scope to incorporate segments like insurance
services, non-banking financial services, co-operatives, benefits
reserves, shared assets, capital market and so on. Financial division's commitment goes
over considerably increasingly solid when we take a gander at sheer number of work and expense
income it creates. Particularly business produced by banking and protection segment each year runs
in millions. Similarly income age through duty and profit assortment by the legislature
outperforms billions of rupees consistently. While income and business age are two significant
commitments, effectively keeping up sound credit line to mechanical division just as to
generally speaking economy is another significant commitment of financial area. Banks and
non-banks in India have been releasing credit in billions to huge, medium/little ventures,
business people and so on each financial year.

The development of financial division in India at present is almost 8.5% every year. The ascent
in the development rate recommends the development of the economy. The financial strategies
and the money related arrangements can support a steady development rate. The changes relating
to the fiscal approaches and the full scale monetary approaches in the course of the most recent
couple of years has affected the Indian economy deeply. The significant advance towards opening up
of the financial market additionally was the invalidation of the guidelines confining the
development of the financial area in India. To keep up such a development for a drawn out the
swelling needs to descend further. The financial division in India had a general development of
15%, which has displayed security in the course of the most recent couple of years albeit a few
different markets over the Asian district were experiencing a disturbance. The improvement of
the framework relating to the financial segment was the way in to the development of the
equivalent. With the opening of the financial market assortment of items and services were
acquainted with suit the need of the client. The Reserve Bank of India (RBI) assumed a unique
job in the development of the financial segment of India.

2.4. Level and Type of Competition- Firms Operating in the Industry

For the financial services industry, because of the size of these huge fintech organizations and
the qualities of their digitized ecosystems — decentralized creation, incredible connects to related
markets and a worldwide dispersion of items and services—this extension can possibly turn
into a genuine distinct advantage. In any case, its real effect is difficult to foresee. From one
perspective, new players are relied upon to concentrate on promoting and circulating financial
items, and less on exercises in more vigorously directed territories —, for example, the
assortment of stores

Competition in the financial sector matters for various reasons. As in different businesses, the level
of rivalry in the financial sector matters for the proficiency of creation of financial services, the
nature of financial items and the level of development in the sector. The view that opposition in
financial services is unambiguously acceptable, in any case, is more gullible than in different
ventures and lively
competition may not be the main best. Explicit to the financial sector is the impact of
exorbitant rivalry on financial strength, since a long time ago perceived in hypothetical and exact
research and, above all, in the real lead of (prudential) approach towards banks. There are different
entanglements, be that as it may, too. It has been appeared, hypothetically and observationally,
that the level of rivalry in the financial sector can matter (contrarily or emphatically) for the
entrance of firms and family units to financial services, thus influencing generally monetary
development. As far as the variables driving competition in the financial sector and the
observational estimation of competition, one needs to consider the standard modern association
factors, for example, passage/exit and contestability. Yet, financial services arrangement
additionally has many system properties, in their creation (e.g., utilization of data systems),
circulation (e.g., utilization of ATMs), and in their utilization (e.g., the huge externalities of stock
trades and the agglomeration impacts in liquidity). This makes for complex competition
structures since viewpoints, for example, the accessibility of systems utilized or the primary
mover advantage in presenting financial agreements become significant. Not exclusively are a
significant number of the connections and tradeoffs among competition, financial framework
execution, access to financing, soundness, lastly development, complex from a hypothetical
point of view, yet observational proof on competition in the financial sector has been rare and
to the degree accessible frequently not (yet) clear. What is clear from hypothesis and empirics, in
any case, is that these tradeoffs imply that it isn't adequate to examine intensity from a
restricted idea alone or center around one impact as it were. One needs to think about
competition as a major aspect of an expansive arrangement of goals, including financial sector
effectiveness, access to financial services for different fragments of clients, and foundational
financial sector soundness, and think about potential tradeoffs among these destinations.
Furthermore, since competition relies upon a few elements, one needs to consider a wide
arrangement of strategy devices when attempting to expand competition in the financial
sector.

Clients progressively anticipate adaptable, customized services. They anticipate them now and again
and in spots of their decision and to have items explicitly customized to their necessities. What's
more, they need full services on their cell phones. FinTech firms make this sort of significance
their take-off point. Many are centered around the buyer space, where innovation has empowered
them to reach and procure clients all the more without any problem. The absolute most
noteworthy advances from new contenders have come in retail customer banking. The $100
trillion installments showcase has for some time been ruled by significant banks, Mastercard
organizations, and other financial firms. Be that as it may, new contestants are developing, offering
less expensive and progressively adaptable methods for handling installments, and they currently
have the greater part of the online market. A large number of the FinTech firms are focusing on
more youthful clients—their normal age is right now 34—and are set apart by nimbleness in
hierarchical structure just as in conveying innovation . The kept scaling up of
these new businesses presents developing serious dangers to the occupants. Distributed and web
based loaning speak to a significant market for development outside of conventional occupants.
In 2016, online stages gave around 15% of all SME credits in the United Kingdom. In the United
States, FinTech organizations represent about 33% of this loaning, up from under 1% in
2010. New models are developing too, which could significantly affect financial services later on.
One new model is the "bank- as-a-marketplace," which permits clients to effortlessly move
cash into various suppliers.

Taking all things together, this implies competition arrangement in the financial sector is very
perplexing and can be difficult to dissect. Observational research on competition in the financial
sector is likewise still at a beginning period. The proof in any case shows that variables driving
competition and competition have been significant parts of ongoing financial sector upgrades.
Until now, more noteworthy competition have been accomplished by customary methods:
evacuating passage hindrances, changing item limitations, nullifying prohibitive market
definitions, disposing of intra- sectoral limitations, and so on. Making thusly financial frameworks
progressively open and contestable, i.e., having low obstructions to passage and exit, has for the
most part prompted more prominent item separation, lower cost of financial intermediation,
more access to financial services, and upgraded soundness. The proof for these impacts is
genuinely widespread, from the US, EU and other created nations to many creating nations. As
globalization, mechanical upgrades and de-guideline further advancement, the increases of
competition can be required to turn out to be considerably increasingly wide-spread across and
inside nations. Simultaneously, when the simpler advances have been taken, approaches to
accomplish successful competition in all measurements and adjusting the exchange offs among
competition and different concerns, become all the more testing. The fast serious increases
because of the main rounds of advancement in the course of recent decades will be difficult to
continue going ahead. Unpredictability will likewise get more prominent going ahead as
financial services enterprises advance, financial markets and items become increasingly intricate
and worldwide, and new administrative and competition strategy issues emerge. The quickly
changing universe of financial services arrangement and the numerous new types of financial
services arrangement implies even more that ways to deal with competition issues should be
balanced. What is uncommon about competition in financial sector? What's more, how does
competition make a difference? The two inquiries are firmly related and rely thus upon what
measurements one dissect the connections among competition and the accompanying three
measurements: financial sector advancement (counting the proficiency of financial services
arrangement); access to financial services for family units and firms (i.e., the accessibility, or
deficiency in that department, of financial services at sensible expense and comfort); and
financial sector soundness (i.e., the nonappearance of fundamental aggravations that have
significant genuine sector sway). Notably the impact of over the top competition on financial
soundness, yet in addition that
the level of competition matters for the entrance of firms and family units to financial services.
As a result, the view that competition in financial services is unambiguously acceptable is more
credulous than in different ventures. What's more, it isn't adequate to dissect seriousness from a
limited idea alone or center around one impact as it were. One needs to think about a more
extensive arrangement of targets, including effectiveness, access to services to different fragments
of clients, and fundamental financial sector dependability, and potential tradeoffs among these goal.
As far as the variables driving competition in the financial sector and observational
estimation of competition.

2.5. Pricing Strategies in the Industry

Throughout the most recent decades, the edges of the financial business have diminished,
this is a blend of lower incomes and greater expenses. The weight on the incomes is basically
determined by increment in competition, more significant expense affectability of customers
(particularly the most youthful), options in contrast to current costly Wealth Management items
(for example increasingly aloof oversaw assets, ETF) and nullification of nation explicit points
of interest inside the EU. The expenses are likewise expanding du to upward weight from
controllers, and expanding specialized help to satisfy administrative prerequisites. In the midst of
expanding loan costs, the impact will turn out to be far more terrible because of higher capital
expenses. A diminishing in cost is a perilous procedure, as it very well may be trailed by the
competition and lead to a descending winding. In addition the commitment edge per unit
sold is diminishing and there is no sureness that volume will increment. Shrewd estimating
requires the reconciliation of significant worth and social viewpoints. The financial services firms
ought not consider the "esteem" of the items/services dependent on a cost-
driven/contender driven methodology. It ought to likewise incorporate the unreasonable parts
of customer conduct. Among personal conduct standards, we can feature the followings:

 The compromise effect alludes to the reality of continually heading off to the "decision
of the center" to stay away from a choice.
 The anchoring effect alludes to the inclination to join our contemplations to a reference
point, regardless of whether it has no pertinence to the choice we are making at the
present time.
 The endowment effect is the inclination and discernment that the individual
responsibility for object surpasses any recorded market esteem.
 The framing effect is an intellectual inclination that alludes to the way that we tend to
reach determinations depending how the data is introduced to us.
Investigating and understanding the social impacts can take cross-purchasing, which alludes
to the client conduct of purchasing more services from a similar firm, to a next level.

Key element for success in pricing are: intelligent offering, list price setting & discount
management, client centric sales approach. Intelligent offering is by understanding the
needs of client in a differentiated way and making it easy for client to understand. List price
setting & discount management adapt price based on the willingness of the client to pay. This
method optimises the price structure based on the client. There are 4 types of clients in this;
bargain seeker (focuses on getting the best price), fairness seeker (price sensitive but pays
attention to product quality), convenience seeker (time sensitive and need quick services) and
brand&service seeker (price is least important). Client centric sales approach is by making a
“cutting-the-edge”method for client and mix digital tools for better experience for the client by
improving communication, price as well as discount and effectiveness of sales. Hence pricing
can be powerful tool in financial services industry.

2.6. Prospects and Challenges in the Industry

Financial service firms are confronting numerous challenges today. Its greater part has
to do with the fast changes in innovation. While most by far of financial firms have grasped the
innovation upset, there are as yet numerous difficulties these organizations need to confront.
Some of the challenges are:

i. Eliminating data breaches and cybercrime.

ii. Keeping up with monetary as well as financial regulations.
iii. Exceeding customer expectation.
iv. Keeping up with technology.
v. Increasing competition.
vi. Usage of Bigdata and AI for finance.
vii. Employee retention in the industry.
viii. Investors’ confidence.
ix. Capital requirements and earnings.
x. Lockdown and world emergencies.

COVID-19 is an example for world emergency and lockdown which caused a severe
imbalance in economy around the world. The stock market is highly volatile which makes
the investors alarmed. This require quick and immediate measure to stabilize the market.
Governments are already taking measures to manage these issues through several economic
relief packages. It is now time for banks
to alleviate the economic situation for the survival of companies. To have the option to adapt
to this, financial institution face the extra test of keeping up their own ordinary tasks. All things
considered, the financial segment is likewise intensely influenced by the measures taken
against the spread of the Coronavirus. Branches are being shut for wellbeing reasons and
individual contacts between bank advisors and clients are as of now barely conceivable. Whole
offices are briefly telecommuting, which goes up against keeps money with exceptional
managerial difficulties – settled, frequently paper-based procedures abruptly no longer
carry out the responsibility. For an all-encompassing period, numerous inner and outside
administrations will be accessible only on the web. Apart from the effect in supply and
demand side, COVID-19 is also lead to a sharp fall in the bond yields, oil and equity prices.
In the US 10-year bond yield have soared less than 0.5% (chart 2) and equity price on major
stocks indices have crashed. At this point market is trying to price in a worst-case scenario
which have increased the volatility in the market.

Chart 2. Crashing bond yelds

With the ongoing jolts to the supply and demand, there are chances for further
market disruptions. Institution and people may experience a liquidity crunch, with limited access
to credit. This may even cause corporate debts. Private debt has arrived at record level as of
late, and roughly one- portion of the speculation grade advertise at present holds a
triple-B rating.
Quickly propelling advances, developing client desires and a changing administrative scene
are opening ways to troublesome advancement in financial services. From digital currencies to
bigdata, fintech advancements have caught the consideration and creative mind of clients, financial
specialists and occupants. In any case, the nature and degree of the effect that these developments
will have on the financial services industry stays muddled. Various developments have risen in the
previous five years utilizing cell phones and network to make installments less difficult and the
sky is the limit from there significant. Models go from advanced wallets to mechanized machine-to-
machine instalments. Most of these advancements will alter front-end procedures to improve the
client and dealer experience while leaving the hidden installments framework undisrupted.
These developments will diminish the utilization of money and make installments less
noticeable to payers. They will likewise empower financial establishments and vendors to utilize
information driven client commitment stages. As greater installment arrangements permit clients to
interface their ledgers for direct installment and consistent retail location merchant financing, the
utilization of Mastercards could be dislodged by these stages. Clients may lose perceivability into
their installment decisions, expanding their default a lot of wallet and diminishing the
significance of a few customary differentiators like brand and structure. The disposal of a need
to convey physical cards and the development of installment choice emotionally supportive
networks could bolster the multiplication of specialty and vendor gave cards, fragmenting wallet
share among numerous cards

With the fast development of innovation, computerized services turned into a crucial piece
of banking activities as these establishments expected to stay aware of the progressions and
present advancements that made services helpful. In India, the underlying period of digitization
started during the 1980s when data innovation was utilized to perform essential capacities like
client care, accounting, and so forth. Bit by bit center financial arrangements were likewise
received to improve client experience. The principle move came during the 1990s when
advancement opened the Indian market to the worldwide world. Private and universal banks
which came into activity helped mechanical changes in the financial sector. Highlights like web
based banking, IMPS (Immediate Payment Service), RTGS (Real Time Gross Settlement),
telebanking empowered clients to benefit banking offices from anyplace. Fintech organizations
represent considerable authority in creating innovation arrangements that help organizations to
deal with the financial parts of their business, as new virtual products, applications, forms just
as plans of action. Ventures made on Fintech organizations have expanded radically in the
previous decade making it a multi-billion dollar industry all around.
2.7. Key Drivers of the Industry

The vast majority of the biggest financial services organizations are significant loan specialists
and speculators; their portfolio execution is driven by the income of different sectors. At the point
when the economy is solid and organizations are growing, some portion of that expanded income
comes back to the banks as installment on capital. Banking benefits will in general drop when
the economy battles. National bank approach assumes a colossal job in the financial services
sector. Capital necessities are set by national banks, and financing costs assist drive with
arbitraging openings among short-and long haul rates. At the point when financing cost spreads
are high, the sector performs well. Low rate strategies additionally support organizations and
individual purchasers to obtain cash, which happens through the financial framework.

Speculator certainty influences the gainfulness of venture specialist co-ops. Resource the executives
organizations, private value firms and other related services depend on financial specialists who
need to make exchanges. The speed of exchanges is significant. This equivalent idea can be applied
to contract organizations and home credits. The years following the financial emergency saw
the execution of a large group of new guidelines, oversights and bookkeeping gauges for the
financial services industry. A 2013 overview of in excess of 1,000 financial services
administrators from around the globe showed that about 90 percent of organizations in this
sector were "tested in overseeing administrative change." Exactly what sway these progressions
will have on sector benefit is obscure, yet it's notable that administrative consistence isn't sans
cost. Future development should happen regardless of the difficulties of government
mediation. Some of the key factor for success are:

i. Measuring marketing effort

Following the aftereffects of your advertising endeavors is critical to effectively
constructing your financial services business, says the Journal of Financial Services
Marketing. The following framework needs to consider how your promoting endeavors
help improve your arrival on speculation while giving answers for your customer's financial
needs. You additionally need to perform predictable following that recognizes which
advertising methodologies sell the most financial items and services. You would then be
able to appoint a bigger spending plan to the fruitful strategies to additionally help
increment deals and the quantity of customers who trust and depend on your
organization for financial arrangements.

ii. Communicating brand

Following the aftereffects of your showcasing endeavors is vital to effectively assembling
your financial services business, says the Journal of Financial Services Marketing. The
following
framework needs to consider how your promoting endeavors help improve your arrival
on speculation while giving answers for your customer's financial needs. You additionally
need to perform predictable following that distinguishes which promoting methodologies sell
the most financial items and services. You would then be able to relegate a bigger
spending plan to the effective strategies to additionally help increment deals and the
quantity of customers who trust and depend on your organization for financial
arrangements.

iii. Focus on needs

The expanding needs of children of post war America and Generation Y require financial
services organizations to give the sorts of item and services these sections explicitly need, as
indicated by a report by Banking.com. Since organizations will keep on making their workers
progressively answerable for their retirement investment funds, these clients need
counseling and items that assist them with settling on better financial choices.
Another sector financial services organizations need to tune into will be independent
companies that need credit, protection and speculation guidance.

iv. Utilizing technology

Clients need more moment availability to their records than any time in recent memory,
making remote systems and Internet get to significant devices. By keeping on the
utilization of uses fueled by distributed computing just as internet based life sites and
cell phones, you help your clients all the more effectively deal with their ventures and
purchase financial items. By using the information picked up from the utilization of
innovation, your organization can react all the more rapidly to your client's needs and
rapidly make new contributions. The innovation likewise encourages you react all the more
quickly to changes in the market, giving you an upper hand over other financial help
organizations that are delayed to respond.
Fintechs have tangibly changed the premise of competition in financial services, yet have not
yet substantially changed the serious scene. Some of the factors that are affecting innovation
are:

i. Platforms rising
The ascent of client decision will have significant ramifications on the structure
and conveyance of items, and will probably constrain organizations to move jobs. Stages
that offer the capacity to connect with various financial establishments from a solitary
channel may turn into the prevailing model for the conveyance of financial services. The
ascent of these stages, for example, open banking, will probably reshape financial
services from obviously
characterized associations to compatible substances. This may necessitate that stage
proprietors are skilled biological system supervisors, adjusting the requirements of the
item producers with client request.

ii. Financial regionalization

Differing regulatory priorities, technological capabilities and customer needs are
challenging the narrative of increasing financial globalization and making way for
regional models of financial services suited to local conditions. Even global firms may
need distinct strategies to cultivate regional competitive advantage and integrate with local
ecosystems. Meanwhile, fintechs will likely face serious obstacles to establishing
themselves in multiple jurisdictions, even as technology lowers barriers to entry.
Incumbents may become attractive partners for fintechs seeking to enter new markets as
they look for opportunities to rapidly acquire scale.

iii. Systematically important techs

Endeavors by occupant financial organizations to imitate the center capacities of huge
innovation firms will probably prompt an expanding dependence on those equivalent
enormous innovation firms. For instance, as financial organizations look to upgrade clients'
advanced encounters and open information and incomes from client stages, they
are progressively reliant on huge specialists' cloud-based framework to scale and send
forms and to tackle man-made reasoning as an assistance. As financial organizations look
for new focal points to develop their serious impression, they will be left with intense
decisions: become reliant on huge innovation organizations or hazard falling behind on
mechanical contributions on the off chance that they limit commitment to secure
autonomy.

iv. Cost commoditization

Financial establishments may forcefully commoditize their cost bases, evacuating it as a
state of competition and making new reason for separation.

v. Bionic workforce
As the capacity of machines to reproduce the practices of people keep on advancing,
financial establishments will probably need to oversee work and capital as a solitary
arrangement of abilities.
vi. Data monetization
Information may turn out to be progressively significant for separation, yet static datasets
will probably be supplanted by streams of information from various sources
consolidated and utilized continuously.

vii. Profit redistribution

Innovation will probably empower associations to sidestep customary worth
chains, consequently redistributing benefit pools.

viii. Experience ownership

Force will probably move to the proprietor of the client interface; unadulterated makers
must, accordingly, become hyper-scaled or hyper-centered.

2.8. Stalwarts in the Industry

Arriving at the top crosspiece of a European global is a titanic errand, particularly MNCs
situated in mainland Europe, where language and culture overshadow other imperative parameters.
Anshu Jain's rise as the co-CEO of Deutsche Bank is of enormous hugeness, however he needs
to share the top opening at the German bank. Jain assumes control over the reins of the bank even
as the financial sector unrest is being happened across Europe.

Jain isn't the principal worldwide investor of Indian starting point to ascend to the highest
point of the class. The banking and fund sector has seen various Indians develop as CEOs including
Victor Menzes (Citibank), Jay Sidhu (Sovereign Bancorp), Rana Talwar (Standard Chartered), Aman
Mehta (HSBC), and Vikram Pandit (Citigroup Inc).

While these are the top weapons, there are some other first rate investors and financial fat cats who
are lesser known because of their position of safety or are as yet ascending the progression.
Normal presumes like Ajit Jain (Berkshire Hathaway), Ajay Banga (MasterCard) and Jaspal Bindra
(Standard Chartered) have been deliberately prohibited from this rundown.

i. Warren Buffet: Berkshire Hathaway

Watten Buffet is considered as one of the most successful investors in the history. He is
reffered as the “Oracle of Omaha”. By following the principles of Benjamin Graham, he
have collected a multibillion dollar fortune through buying stocks and companies. Buffett's
contributing style of control, persistence, and worth has reliably outflanked the market for
a considerable period of time. His net worth is 6,920 crores USD and he is the
chairman as well as CEO of Berkshire
Hathaway. He is also the fourth wealthiest person in the world. Buffet has built up a
rundown of fundamentals that assist him with utilizing his speculation reasoning to
maximum effect.

ii. Benjamin Graham:

He is known as the guru of finance and investments, “the father of value investing”.
Graham earned a lot of money by investing in stock market without taking big risks
and by evaluating companies deeply. His principles of investing safely and
successfully continue to influence investors even today. The great stock market crash
in 1929 taught Graham a lesson about minimizing the risk by investing in the
companies whose share trade is lower than their liquidation value.

iii. V Prem Watsa : Fairfax Financial Holdings

Prevalently known as the Warren Buffett of Canada, Watsa drives Fairfax, a financial
services holding organization which is into property and loss protection and
reinsurance, other than venture the board. The Hyderabad-conceived IIT Madras
graduate assumed control over the reins of Fairfax in 1985 and has luxuriated in his
notoriety for being a worth speculator, however the jury is still out on his wager on
BlackBerry creator Research In Motion. In the wake of setting up an India office a
year ago, Fairfax as of late did what needs to be done in the nation by gaining 77
percent stake in the Indian unit of UK's movement services firm Thomas Cook Group
plc in a $150-million arrangement.

iv. Sanjiv Das: President & CEO, CitiMortgage

Think Citibank, and Vikram Pandit catches your eye. In any case, Sanjiv Das is the other
Indian in the top bar of the US banking behemoth. Subsequent to serving eight years at Citi
during the 1990s, Das filled in as overseeing chief in Morgan Stanley's Institutional
Securities Group. Four years prior he came back to head CitiMortgage. The science
graduate from Delhi University who proceeded to finish a MBA in showcasing and money
from IIM Ahmedabad, heads the unit which gives data about home loans, home
renegotiating and home credit items.

v. Rakesh JhunJhunwala:
He is an Indian investor, trader and charted accountant with a Midas touch. He is
known as India’s own Warren Buffet. Jhunjhunwala is the 48th richest man in the
country according to Forbe’s list with a net worth of 200crores USD. He is the
chairman of Hungama Media and Aptech and also part of board of directors of firms
such as Viceroy Hotels, Concord Biotech
Geojit Financial Services and Provogue India. In 1985 he invested Rs.5000 as capital
and by September 20018, that inflated and became Rs,11,000 crore. He have invested in
companies such as Titan, Tata Tea, CRISIL, Sesa Goa, Praj industries, Aurobindo
Pharma and NCC.

vi. Purna Saggurti: Chairman of Global Corporate Investment Banking, Bank of America
Saggurti heads a unit which had around $11.2 billion in incomes in 2010. Before being
named to his present job, he has filled in as the co-head of worldwide venture banking
and dealt with swell section bargains for customers including Dow, Dupont,
Engelhard, GE, Hoechst, Huntsman, Lyondell Basell, Merck, Potash Corp and
Reliance. A compound designer from Andhra University and a MBA from Wharton,
Saggurti has recently filled in as Head of Americas Origination at Merrill Lynch, which
incorporated all venture banking, M&As and capital markets beginning in the US,
Canada and Latin America.

vii. V Shankar: Group Executive Director and Board Member, Standard Charted PLC
Dubai-based Shankar is CEO for Europe, Middle East, Africa and Americas of
Standard Chartered. Shankar is additionally the official director of Principal Finance and
administrator of The Private Bank. Before joining Standard Chartered Bank in September
2011, Shankar, a material science move on from Chennai and MBA from IIM
Bangalore, went through very nearly two decades with Bank of America in Asia and
the US. In his last stretch with Bank of America, Shankar was an overseeing chief - Head
of Asia-Pacific Investment Banking and CEO of Bank of America Asia Limited situated
in Hong Kong.

viii. Punit Renjen: Chairman, Deloitte

Renjen is a Deloitte veteran, having gone through more than two decades with it. Before
taking over as the administrator of Deloitte, Renjen held a string of influential
positions. Most as of late Renjen was Chairman and CEO of Deloitte Consulting LLP,
where he drove Strategy and Operations (S&O) and M&A Consultative Services for Deloitte
Consulting in the US just as for the worldwide system, Deloitte Touche Tohmatsu
Limited (DTTL). He additionally seats the Deloitte LLP board.

ix. Ashok Vardhan: Global Head of Currencies & Emerging Markets, Goldman Sachs
Varadhan turned into an accomplice overseeing executive (PMD) at top section US
bank Goldman Sachs at 29 years old. Presently in his late 30s, Varadhan is the
worldwide head of remote trade exchanging. The child of a science scholarly at New York
University, Varadhan
was raised to Goldman Sachs' administration board of trustees a couple of months
back. Varadhan joined Goldman Sachs in 1998 in Swaps Trading and immediately
became head of USD Derivative Trading in 2000, head of North American IRP in 2001,
worldwide head of Currencies in 2007 and worldwide head of Emerging Markets in 2008.
Preceding joining the firm, he was a VP in Swaps Trading for Merrill Lynch. Varadhan
is viewed as a solid contender to take over as the head of Goldman Sachs in future.

x. Vijay Advani: Executive Vice President, Franklin Templeton

Advani drives Franklin Templeton's worldwide retail and institutional circulation
methodologies and activities, including deals, promoting, customer administration and item
advancement. He joined Templeton in 1995 as the President of Templeton Asset
Management (India) Pvt. Ltd. in Mumbai before moving to Singapore in 2000 as the
Regional Managing Director, Product Development, Sales and Marketing for Asia, Eastern
Europe, and Africa. He moved to the US two years after the fact. Preceding joining
Franklin, Advani worked at the World Bank in Washington where his essential duty
was giving warning and specialized help to government specialists. In the wake of
getting a single guys degree in bookkeeping and money from Bombay University,
Advani proceeded to sack a MBA from the University of Massachusetts, Amherst.
INDUSTRY ANALYSIS
3.1.Porter’s 5 Forces Model

According to Michael Porter the Five Forces at work inside an industry can be assessed to
clarify that industry's potential gainfulness. As an industry makes industry benefits the members of
every one of the five powers will 'plan' to siphon gainfulness from that industry. Porter Five
Forces is an all- encompassing technique system that removed key choice from simply
investigating the current competition. Porter Five Forces centers around - how Financial Services
can manufacture a reasonable upper hand in Credit Services industry. Directors at Financial
Services cannot just utilize Porter Five Forces to build up a key situation with in Credit Services
industry yet in addition can investigate productive open doors in entire financial sector.

Chart 3. Comparison of financial service industry with other industries

i. Threat of new entrants

New participants in Credit Services brings advancement, better approaches for getting things
done and put focus on Financial Services through lower evaluating system, lessening costs,
and giving new incentives to the clients. Find Financial Services needs to deal with every one
of these difficulties and fabricate successful boundaries to shield its serious edge. There won't
be any new enormous mass-showcase players, yet there will be new autonomous agent seller
players just as discounters, banks, insurance agencies and credit associations. Consider
well the free shops where an intermediary can open for business actually overnight. The
expenses of self clearing, enlisting, staffing, innovation and so on forestall any new mass-
market or specialty players from
going ahead the scene. The quantity of sub-ventures creating inside the financial services
industry has seen emotional development in the course of the most recent few decades.
With the fall of Glass-Steagall, the obstructions to section fell stunningly. Inside each sub-
industry, there are not many hindrances to section to forestall fast development. For example,
nearly anybody can find a new line of work with an insurance agency selling protection.
They would then be able to get authorized to sell protections (shared assets and variable
annuities). Inside the financial framework, numerous customer confronting workers have
in any event a Series 6. At that point inside the free/local and distribution center ventures,
the main boundary is the capacity to breeze through the protections tests. Not a hindrance
extremely, increasingly like a hindrance. This can be tackled by developing new items and
services. New items carries new clients to the overlap as well as give old client motivation to
purchase Financial Services 's items, by building economies of scale with the goal that it can
bring down the fixed expense per unit. New contestants are more averse to enter a unique
industry where the set up players, for example, Financial Services continue characterizing
the norms routinely. It fundamentally lessens the window of uncommon benefits for the new
firms in this manner debilitate new players in the business.

ii. Bargaining power of suppliers

All most all the organizations in the Credit Services industry purchase their crude material
from various providers. Providers in predominant position can diminish the edges Financial
Services can win in the market. Ground-breaking providers in Financial sector utilize
their arranging capacity to separate more significant expenses from the organizations in
Credit Services field. The general effect of higher provider dealing power is that it brings
down the general benefit of Credit Services. Who are the providers to a business
dependent on intangibles? Shared store organizations, multifaceted investments, other
specialist sellers in organized arrangements, separate record supervisors, disaster protection
organizations and organizations hoping to open up to the world, and in all honesty, Advisors
fit in this classification. Their bartering power has become in the course of the most
recent 20 years from not being paid to move, to arrangements of up to 300% of their
trailing a year creation just as commission and expense payouts and benefits. Today these
mass-showcase firms must compensation their Advisors to remain at take a shot at top of pay,
rewards and advantages. They are called maintenance rewards. Shared assets, insurance
agencies, cash supervisors can access the different firms, however to be in a favored
rundown, these substances need to pay some extra. This is to increase a decent spot on
the rack, eye level. This can be tackled by building productive gracefully chain with different
providers, by trying different things with item plans utilizing various materials so that on
the off chance that
the costs go up of one crude material, at that point organization can move to another.
Creating committed providers whose business relies on the firm. One of the exercises
Financial Services can gain from Wal-Mart and Nike is the means by which these
organizations grew outsider makers whose business exclusively relies upon them
consequently making a situation where these outsider makers have fundamentally less
dealing power contrast with Wal-Mart and Nike.

iii. Bargaining power of buyers

Buyers are frequently a requesting part. They need to purchase the best contributions
accessible by following through on the base cost as could be expected under the
circumstances. This put focus on Financial Services gainfulness over the long haul. The
littler and all the more remarkable the client base is of Financial Services the higher the
haggling intensity of the clients and higher their capacity to look for expanding limits and
offers. Gone are the days when the business had all the data. In the 80's the telephone
would ring around evening time and the ends of the week with speculators searching for
a clarification for the drop in AT&T's stock. The paper was the main spot to get a
statement at that point and if AT&T went ex-profit it used to be sufficient to make a call.
Along comes the web and now the purchasers approach quicker, better and more clear
examination and data than the business itself gives to Advisors. As though that were
sufficient, presently there are numerous wellsprings of data the financial specialist can
get to. While their Advisor is left with having the option to just gracefully the company's
individual- financial specialist edible research. This can be tackled by building a huge base of
clients. This will be useful in two different ways. It will decrease the dealing intensity of the
purchasers in addition to it will give a chance to the firm to smooth out its deals and
creation process. By quickly developing new items. Clients regularly look for limits and
contributions on set up items so on the off chance that Financial Services continue thinking
of new items, at that point it can restrict the bartering intensity of purchasers. New items will
likewise lessen the absconding of existing clients of Financial Services to its rivals.

iv. Threat of substitute product or services

What is it the organizations in the wealth management industry give? Wealth move,
wealth conservation and wealth creation. Wealth Transfer can be dealt with by insurance
agencies, and they do a ton! Wealth Preservation by banks, trust organizations,
disaster protection organizations. Wealth Creation in this nation has consistently
experienced the making of organizations; long, slow restrained contributing; karma
with corporate investment opportunities; land and other non-financial markets; these
not the space of expanded financial
services organizations. Financial Services firms are not where speculators go to get wealthier.
It is the spot wealthy individuals go in order to maintain their wealth. At the point when
another item or administration meets a comparable client needs in various manners,
industry productivity endures. For instance services like Dropbox and Google Drive are
substitute to capacity equipment drives. The risk of a substitute item or administration is
high on the off chance that it offers an incentive that is interestingly unique in relation to
introduce contributions of the business. This can be tackled by being administration
situated as opposed to simply item arranged, by understanding the center need of the
client as opposed to what the client is purchasing, by expanding the exchanging cost
for the clients.

v. Rivalry among existing competitors

These organizations assault each other's neighborhood shops offering checks running from
200% to 300% of the financial consultant's trailing year creation. One organization had
around 6500 Advisors during the 90's. Enrolling wars were warming up at that point. Quick
forward 13 years, they despite everything have around 6500 Advisors regardless of 3
acquisitions and 13 years of selecting. The business has been totally fixed in the value
inquire about divisions since 2003; sometime in the past the nature of research was a
differentiator and the competition to offer the best exhortation was angry. There is no
competition to be the least cost supplier, competition on costs is left up the counsel sitting
before the customer generally. At the firm level, there is basically no real way to recognize
the customer experience from one to the next on the mass-showcase side, other than
brand. In the event that the contention among the current players in an industry is extreme,
at that point it will drive down costs and abatement the general benefit of the business. Find
Financial Services works in a serious Credit Services industry. This competition takes cost for
the general long haul benefit of the association. This can be tackled by building a
reasonable separation, by building scale so it can contend better, teaming up with contenders
to expand the market size as opposed to simply going after little market.

3.2. PESTEL Analysis

PESTEL analysis is an important method to examine the full scale condition of the
association. PESTEL represents - Political, Economic, Social, Technological, Environmental and
Legal components that sway the full scale condition of an industry or organization.
i. Political Factor
Political components assume a huge job in deciding the elements that can affect
Financial Services' drawn out productivity in a specific nation or market. Money related
Services is working in Credit Services in excess of dozen nations and open itself to various
kinds of political condition and political framework dangers. The make progress in such a
unique Credit Services industry across different nations is to enhance the efficient dangers
of political condition. Money related Services can intently dissect the accompanying elements
before entering or putting resources into a specific market. Some of the political factors that
may affect financial service industry are:
 Political solidness and significance of Credit Services area in the nation's
economy.
 Danger of military attack
 Level of debasement - particularly levels of guideline in Financial area.
 Organization and impedance in Credit Services industry by government.
 Legal structure for contract authorization
 Licensed innovation assurance.
 Exchange guidelines and levies identified with Financial
 Supported exchanging accomplices
 Hostile to believe laws identified with Credit Services
 Evaluating guidelines – Are there any estimating administrative instrument for
Financial
 Tax collection - charge rates and motivations
 Pay enactment - the lowest pay permitted by law and extra time
 Work week guidelines in Credit Services
 Compulsory worker benefits
 Modern wellbeing guidelines in the Financial part.
 Item marking and different necessities in Credit Services

ii. Economic Factor

The Macro condition factors, for example, – inflation rate, reserve funds rate, loan fee,
remote swapping scale and economic cycle decide the total interest and total interest in
an economy. While small scale condition factors, for example, rivalry standards sway the
upper hand of the firm. Find Financial Services can utilize nation's economic factor, for
example, development rate, swelling and industry's economic markers, for example, Credit
Services industry development
rate, buyer spending and so forth to estimate the development direction of financial
service segment as well as that of the association.
At present, due to the pandemic COVID-19, the government as well as RBI is
implementing Economic relief packages for stabilizing the economic condition. Moratoriums
are introduced so that there will be enough money supply. Government is also planning to
take up the bonds which are double AA rated bonds and lesser than that. These are actually
helping to reduce the volatility and increase the investments made by the people. The
measures taken by the government is for increasing the savings and investments of the
people which will accelerate the pace of growth. A healthy growth in GDP reflects in the
overall performance of the economy. It will also be reflecting in the stock market. Higher
rate of inflation reduce purchasing power which result in lower demand. Steps have to
be taken by foreseeing the inflation for increasing the demand. Unemployment have a
similar effect in the market. When unemployment increase, demand falls steeply.
Economic factors that Financial Services ought to consider while directing PESTEL analysis
are -
 Kind of economic framework in nations of activity – what sort of economic
framework there is and how stable it is.
 Government intercession in the free market and related Financial.
 Trade rates and strength of host nation money.
 Proficiency of money related markets – Does Financial Services needs to bring capital
up in nearby market?
 Foundation quality in Credit Services industry.
 Similar focal points of host nation and Financial segment in the specific nation.
 Expertise level of workforce in Credit Services industry.
 Training level in the economy.
 Work expenses and profitability in the economy.
 Business cycle stage (for example thriving, downturn, recuperation).
 Economic development rate
 Optional salary
 Unemployment rate
 Inflation rate

iii. Social Factor

Society's way of life and method for doing things sway the way of life of an
association in a situation. Mutual convictions and mentalities of the populace assume an
incredible job in how
advertisers at Financial Services will comprehend the clients of a given market and how they
plan the showcasing message for Credit Services industry customers. Social factors that
initiative of Financial Services ought to examine for PESTEL analysis are -
 Socioeconomics and expertise level of the populace
 Class structure, chain of importance and force structure in the general public.
 Instruction level just as training standard in the Financial Service's industry
 Culture (Orientation of jobs , social shows and so forth.)
 Pioneering soul and more extensive nature of the general public. A few social
orders energize enterprise while some don't.
 Perspectives (wellbeing, environmental cognizance, and so on.)
 Recreation interests

iv. Technological Factor

Innovation is quick disturbing different enterprises in all cases. Transportation industry
is a decent case to delineate this point. Throughout the most recent 5 years the business
has been changing truly quick, not by any means offering opportunity to the set up
players to adapt to the changes. Taxi industry is currently commanded by players like Uber
and Lyft. Vehicle industry is quick pushing toward robotization drove by innovation firm, for
example, Google and assembling is disturbed by Tesla, which has expressed an
electronic vehicle upset.
A firm ought to not exclusively do technological investigation of the business yet in
addition the speed at which innovation disturbs that industry. Slow speed will give additional
time while quick speed of technological interruption may give a firm brief period to adapt
and be beneficial. Innovation investigation includes understanding the accompanying
effects –
 Late technological improvements by Financial Services contenders
 Innovation's effect on item offering
 Effect on cost structure in Credit Services industry
 Effect on esteem chain structure in Financial part
 Pace of technological dispersion

v. Legal Factor
In number of nations, the legal system and foundations are not hearty enough to secure
the licensed innovation privileges of an association. A firm ought to deliberately assess
before
entering such markets as it can prompt burglary of association's mystery ingredient in
this manner the general serious edge.
In India, SEBI is responsible for the laws for all kind of financial services. Every financial
services firm, trader, and investor have to follow the rules regulated by SEBI. Not following
the guideline or breaking the rule can cause penalty and further actions. If the rules and
regulations given by SEBI is stringent, it may reduce the number of investors. Similarly
in online trading, the details given by the customer should be safe. Misuse or theft can cause
severe action against the person or firm.
A portion of the legal components that Financial Services authority ought to consider
while entering another market are -
 Hostile to confide in law in Credit Services industry and in general in the nation.
 Separation law
 Copyright, licenses/Intellectual property law
 Purchaser insurance and online business
 Business law
 Wellbeing and security law
 Information Protection

vi. Environmental Factor

Various markets have various standards or environmental norms which can affect the benefit
of an association in those business sectors. Indeed, even inside a nation frequently states can
have diverse environmental laws and obligation laws. For instance in United States – Texas
and Florida have diverse risk provisions if there should arise an occurrence of accidents
or environmental catastrophe. Likewise a ton of European nations give solid tax cuts to
organizations that work in the inexhaustible segment.
Before entering new markets or beginning another business in existing business sector the
firm ought to deliberately assess the environmental gauges that are required to work in those
business sectors. A portion of the environmental elements that a firm ought to consider in
advance are –
 Climate
 Environmental change
 Laws managing condition contamination
 Air and water contamination guidelines in Credit Services industry
 Reusing
 Squander the executives in Financial segment
 Perspectives toward "green" or environmental items
 Perspectives toward and support for sustainable power source
DISCUSSION
4.1.Objective Assessment

From SWOT Analysis, we can find that Geojit is a pioneer in the capital market. They
have over 1million clients across 400+ workplaces. They have also have collaborations which makes
them more credible and reliable. Collaboration with Rakesh Jhunjhunwala, Bank of Bahrain, Bank of
Kuwait and BNP Paribus itself shows how they have upheld in the industry with biggest
investors. They have marked a milestone by being the first online trading, first to have
worldwide players as investors, first to dispatch an exclusive branch for women, first mobile
trading and so on. They have reached out to maximum customers with their dedicated
research and advisory teams. By focusing more on young business students, they can also
strengthen their customer base. They can use more concentrate more on their marketing side for
more promotion. That will make more awareness among customers. They can choose the option
of Search Engine Optimization, Social Media Marketing to gain the attention of millennial. They
should also start focusing on rural markets as well as in developing more offline mode of trading
opportunities. The major threat for the company is the stringent law and regulation by SEBI,
Government and RBI. This has caused a fine of Rs.30lakh for Geojit for violating norms of stock
broker. Volatility of market is another major concern for them. Currently due to the pandemic
COVID 19, the market is expecting a deglobalization, unemployment, bankrupcies and trade
war in the economy according to the Vinod Nair, Head of Research at Geojit Financial Services.
This lead to investors think twice before investing in any stocks.

Based on the PESTEL Analysis, we can identify that financial services industry are highly influenced
by Political, Economic, Social, Technological, Legal and Environmental factors. Among Political
factors; Political stability, corruption level, bureaucracy and involvement of government, trading
regulations and tariffs are some of the significant factors that affect the investors as well as
financial activities. Inflation rate, funds reserved, interest rates, etc… have a huge role at the
time of investment. When a client invest on a stock they are expecting a certain amount as
return. This will also help them calculating their savings and investment opportunities. Now
there are food inflation causing fall in vegetable prices. Since Geojit have a commodity trading
this will have an effect on commodity trading and commodity futures. The investor should be
capable to payback the loss they have made in the market. This is the main concern among
Social factors. Investors choose avenues and invest based on their perspective and risk
appetite. If their risk appetite is high they will invest in stocks or in mutual funds. But these
are completely based on the market risk. They should be financially literate to understand the
market. Hence Geojit have advisors and research teams who keeps watching the market and provide
the client with appropriate advices. Technology is a factors which distress the industry. But
in case of Geojit they are the first to launch internet trading, mobile trading, SIP, etc. These have
helped the gain more customers as this made trading and investment easier. Through Geojit
Technologies they are always trying to come up with software or app that help customers in
financial activities. Coming to the legal factors, Geojit have always followed the Data protection law,
Health and safety law, Consumer protection and e-commerce law. There were controversies
regarding mismanagement of client’s funds and securities which was found untrue by auditing and
inspections done by SEBI. Environment is one a prime factor the company give priority in their CSR
activities. They have always taken measures to save and nurture the environment.

Porter’s 5 forces model will help identifying and positioning the company in the financial
services industry. Among all the 5 forces, threat of new entrant is considered as a key issue in
the industry. New company with advanced, better and cost effective methodologies can attract
more customer. New entries can also gain a new segment of customers which will affect the
competitors. In case of Geojit, they are already pioneer in the online and mobile financial services
industry. But entry of new or foreign financial services company will threaten them. In financial
service industry, predominant suppliers can diminish the market. This make bargaining with
supplier more important. Advisors have to get paid well with rewards and advantages for this.
Geojit have a strong and dedicated team of advisors and researchers who play a significant role
in managing the demand and supply. Bargaining the buyer is the next force in Porter’s 5 forces.
Customers in Geojit are primarily communicated with the allocated advisors who help the
client in their financial planning. This is purely based on the risk appetite and time horizon
given the client. Higher the risk appetite, higher their capacity to look for expanding limits and
offers. In addition to this, involvement of internet and mobile trading have also influenced the
clients to make quicker, better and more accurate analysis and decision making. SIP of Geojit
have helped customers to plan their financial activities as well as to take a good investment
decision. This will lead to wealth creation and wealth management. Since Geojit provide a wide
range of facilities, services and products chances for going to a substitute are less. Geojit is
one of the firm which charges minimum for all the financial activities. They even have
commodity trading for the first time in Kerala which makes it further unique. Financial service
industry is one of the industry with less competition as almost all the firms are providing similar
services. This is completely based on the benefits given to the customers. As mentioned earlier
Geojit advisors will always be watching your investments and at right time they will help you with
right advices which will help the customers to get a high return through online services. Initially
client had to wait for the newspaper or a call from their advisors whereas Geojit made it easier for
the clients. Hence it is clearly visible that Geojit is one of the pioneer & top Financial Service
Company in the world with strong investors, wide network, variety of products & services, and high
customer base.
4.2. Specific Learning Outcome

Geojit Financial Services is a full service broker offering their client customized online trading
platform, certified financial advisors, strong research ideas and portfolio management services from
their 400+ branches across the globe through their joint ventures for NRI trading. Their key
benefit is that it they charge the minimum brokerage charges for a wide range of products and
services. Compared to it’s competitors like Sharekhan, 5paisa, Zerodha , etc… Geojit have
more investment options including equity trading, currency trading, commodity trading,
mutual funds, SIP, ETF investments as well as insurance. These services are provided through
phone call, customer care service and through internet. Opening a trading as well as Demat account
is free in Geojit whereas in other company they charge a lot for their services. Geojit brokerage
range from 0.03% to 0.3% which is very low compared to its competitors which charge 0.1 to
0.5%, Rs. 20 and so on. For the minimum brokerage fee they provide a 2-in-1 account. They
have a advanced investment platform called “SELFIE” which allows customer to access the market
by setting a watchlist, receiving realtime charts, stock alerts, that enable customer to take
decisions. Geojit have always come up with new technologies to maximise interaction with clients.
There are 3 type of SELFIE programs; SELFIE Platinum, SELFIE Gold, SELFIE Mobile. Geojit have
simple and competitive brokerage structure. The major reason for success is the launch of new
platforms and updated features, by gaining more attention from customers. Another advantage of
Geojit is their strong international collaboration and member in both Bombay Stock Exchange (BSE)
as well as National Stock Exchange (NSE). The company also have its strategic presence in Middle
East region in the form of joint venture and partnerships. Geojit have also conducted a National
Financial Literacy campaign in 2005. Since then they have reached out to thousands of people and
educated them the importance of savings and investments in the capitak market through the
sessions. This has empowered people to become responsible, knowledgeable and intelligent
investors. These sessions were conducted by the Geojit experts who cover the benefits of
investing in the capital market and how to make wise investment decisions. In addition to this,
they have also conducted seminars in association with Government, Stock Exchanges, Regulators,
Depositories, leading national and regional publications to reach out to a wider audience. The
company considers human capital to be a key pillar of their growth. Their skilled and
professional management team is a strong driving force for their success. The company ensure them
a safe, conductive and productive work environment. Their HR policies continually strive
towards attracting, retaining and developing the best talent required for their growth. Their
main aim is to minimize attrition of technologically driven and high performers, especially
amidst the rapidly- evolving business environment. As on 31st March 2019, the strength of the
company’s permanent
employees stood up to 2,365. These factors make Geojit one of the top financial service
company in India.
FINDINGS
Geojit Financial Services Ltd is one of the leading financial service provider. They have been the
pioneer in online trading. They have a strong and strategic presence across the Middle East
region and India. Geojit have the most influential stakeholders like Rakesh Jhunjhunwala and
BNP Paribas. Their experience in the capital market have led to the increase in the number of
clients. They have been investing in man power, technology and improving their services.
Geojit have also taken measures to implement more products with improvised and user friendly
technologies. Apart from this they are also focusing on strengthening their research team, so that
the customers get right financial advices and help to increase their wealth.

Geojit have achieved a market capital of Rs.989crore and asset under custody and
management is Rs.40158 crore during the financial year 2018-2019. Their total revenue
according to the 2018-2019 annual report was Rs.318.21 crore whereas their net worth stood at
Rs.538 crore. Globally their growth have been softened due to the developments happening in the
economy which have negatively impacted the capital market in their growth prospect. The trade
tension between various countries have also raised concern in the market. Slowing
consumption, subdued investments, rural distress and NBFC crisis are few of the major
concerns in India. This is causing huge fluctuations in NIFTY and SENSEX performance. But the
rising financial stability is causing the investors to invest more in financial assets through equities,
mutual fund and bonds rather than investing in physical asset. Assets under management of
equity mutual funds stood at record high of Rs.7.73lakh crore during the last financial year.
Similarly there was growth in SIP contribution of 2.62 crore.

Due to the contraction in Global economic growth, there was a slight decline in the growth of
financial service industry which is coupled with the trade tension and lack of demand. Despite
of this the Indian economy is trying to maintain a faster growth trajectory. For supporting this the
RBI have implementing several policies and reduced the interest rates several times in a
financial year. Indian Banking and Financial sector have managed to be stable through these
situations. Access to these financial services have improved over yeas which is promoting the
institutions in this industry. Total lending have increased by 10.94% and deposit have
increased to 11.60% according to the annual report of 2018- 2019. Some of the key drivers
for the growth in financial services are; saving oriented culture, digitization, financial
inclusion, aadhar linkage, recapitalization package, insolvency & bankruptcy and increasing per
capita income.

Major stock markets around the world are facing a severe loss as compared to the situation in
2008 (except Indian market). Predictions shows that there will be an economic slowdown
which is likely to cause an increase in interest rates, due to the concern of inflation. While
global economy is facing a slowdown, India is standing out with a 4.2% GDP growth. India have a
favourable demographics which
may support the growth for a long-term perspective. Geojit have faced a growth in their
customers as well as the assets, which is indicate their growth in market despite of the
instability in the market.

Coming to the suggestion for their growth, they should focus on wider range of customers as people
are more financially literate these days. They should also focus on launching products and services
time-to- time based on the needs and requirements to attract more customers. By improving
their marketing strategies, they should promote their brand name to more customers through
advertisements and other source of endorsements. Since they already have an affordable brokerage
tariff it will be easier for them to gain more customers. The company can make use of the right
demographic features to expand their customer base.
BIBLIOGRAPHY
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https://www.geojit.com/about- us/about-company on 30 April 2020

Geojit Financial Services Ltd (2019): Why Geojit? : Retrieved from https://www.geojit.com/about-
us/why-geojit on 30 April 2020

Geojit Financial Services Ltd (2019): Annual report 2018-19, 2017-18, 2016-2017,2015-2016.:
Retrieved from https://www.geojit.com/about-us/company-financials on 31April 2020

Value Stocks (2019) : Geojit financial services fundamental report: Retrieved from https://stock-
financials.valuestocks.in/en/geojit-financial-services-fundamental-reports on 1 May 2020

Money control(2019) : SWOT Analysis: Retrieved from https://www.moneycontrol.com/swot-

analysis/geojitfinancialservices/GBN01/strength on 1May 2020

Chittorgarh: Compare Sharekhan and Geojit: Retrieved from

https://www.chittorgarh.com/comparebroker/sharekhan-vs-geojit/2/10/ on 1 May 2020

Chittorgarh: Compare Geojit and IIFL Securities: Retrieved from

https://www.chittorgarh.com/comparebroker/geojit-vs-india-infoline-iifl/10/15/on 1 May 2020

Chittorgarh: Compare Indiabulls and Geojit: Retrieved from

https://www.chittorgarh.com/comparebroker/indiabulls-vs-geojit/3/10/ on 1 May 2020

TopShareBrokers.com: Geojit Products &Services Offering-2020: Retrieved from

https://www.topsharebrokers.com/brokerage-product-and-services/geojit/10/ on 5 May 2020

Business today (24 April 2019): SEBI slaps Rs.30 lakh fine on Geojit Financial Services for the
violation of Stock broker norms. : Retrieved from
https://www.businesstoday.in/current/corporate/sebi-
slaps-rs-30-lakh-fine-on-geojit-financial-services-for-violations-of-stock-broker-
norms/story/339947.html on 6 May 2020

Lewis Pearson (2018): Global Financial Service Industry: Retrieved from

https://www.reportlinker.com/ci02410/Financial-Services.html on 7 May 2020

IBEF (March 2020): Growth of Financial Service Industry in India- infographic: Retrieved
from https://www.ibef.org/industry/financial-services-india/infographic on 7May 2020

IBEF (March 2020): Financial Services in India: Retrieved from

https://www.ibef.org/industry/financial-services-india.aspx on 7 May 2020
Investopedia ( 25 October 2019): The World’s Greatest Investors : Retrieved
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2020

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standard.com/about/who-is-rakesh-jhunjhunwala 8 May 2020

Andrew Bloomenthal (8 February 2020): Warren Buffet’s Investing strategy: An Inside Look :
Retrieved from https://www.investopedia.com/investing/warren-buffetts-investing-style-reviewed/
on 8 May 2020

Geojit (2019): NRI Services- Joint Ventures : Retrieved from https://www.geojit.com/about-us/nri-

services on 9 May 2020

Scott Baret, Anna Calner, Monica O’Reilly, Mark Shilling (16 March 2020) : COVID-19
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impact-covid-19.html on 10 May 2020
ANNEXURE
LIST OF TABLES

No Title Page No.

Table 1 Depository Service 11

Charges

LIST OF CHARTS AND FIGURES

No Title Page No.

Figure 1 Logo of Geojit Financial Services Ltd. 2

Figure 2 Logo of Shareknan 9

Figure 3 Logo of IIFL 9

Figure 4 Logo of Indiabulls 10

Figure 5 Contribution of financial services towards economy 27

Chart 1 New customer till financial year 2018-2019 8

Chart 2 Crashing bond yelds 33

Chart 3 Comparison of financial services industry with other 43

industries