1. 1-1
The Financial System and Competing Financial-Service Institutions (continued)
Leading Competitors with Banks
Financial-service providers are converging in terms of the services they offer
The U.S. Financial Services Modernization (Gramm- Leach-Bliley) Act of 1999 has allowed many different types of financial firms to offer the public one-stop shopping for financial services
The challenge of differentiating banks from other financial-service providers is difficult today
Copyright © 2013 The McGraw-Hill Companies, Inc. Permission required for reproduction or display.

2. 1-2
EXHIBIT 1–2 Comparative Size by Industry of Commercial Banks and Their Principal Financial-Service Competitors
Copyright © 2013 The McGraw-Hill Companies, Inc. Permission required for reproduction or display.

3. Services Banks and Many of Their Closest Competitors Offer the Public
1-3
Services Banks and Many of Their Closest Competitors Offer the Public
Services Banks Have Offered for Centuries
Carrying Out Currency Exchange
Discounting Commercial Notes and Making Business Loans
Offering Savings Deposits
Safekeeping of Valuables and Certification of Value
Supporting Government Activities with Credit
Offering Checking Accounts (Demand Deposits)
Offering Trust Services
Copyright © 2013 The McGraw-Hill Companies, Inc. Permission required for reproduction or display.

4. 1-4
Services Banks and Many of Their Closest Competitors Offer the Public (continued)
Services Banks and Many of Their Financial-Service Competitors Began Offering in the Past Century
Granting Consumer Loans
Financial Advising
Managing Cash
Offering Equipment Leasing
Making Venture Capital Loans
Selling Insurance Policies
Selling and Managing Retirement Plans
Dealing in Securities: Offering Security Brokerage and Investment Banking Services
Offering Mutual Funds, Annuities, and Other Investment Products
Offering Merchant Banking Service
Offering Risk Management and Hedging Services
Copyright © 2013 The McGraw-Hill Companies, Inc. Permission required for reproduction or display.

5. 1-5
TABLE 1–1 The Many Different Roles Banks and Their Closest Competitors Play in Today’s Economy
Copyright © 2013 The McGraw-Hill Companies, Inc. Permission required for reproduction or display.

6. TABLE 1–2 Some of the Leading Financial-Service Firms around the Globe
1-6
TABLE 1–2 Some of the Leading Financial-Service Firms around the Globe
Copyright © 2013 The McGraw-Hill Companies, Inc. Permission required for reproduction or display.

7. 1-7
Key Trends Affecting All Financial-Service Firms – Crisis, Reform, and Change
Service Proliferation
Rising Competition
Government Deregulation and then Reregulation
Crisis, Reform, and Change in Banking and Financial Services
An Increasingly Interest-Sensitive Mix of Funds
Technological Change and Automation
Consolidation and Geographic Expansion
Convergence
Globalization
Copyright © 2013 The McGraw-Hill Companies, Inc. Permission required for reproduction or display.

8. 1-8
Quick Quiz
What is a bank? How does a bank differ from most other financial- service providers?
Why are some banks reaching out to become one-stop financial- service conglomerates? Is this a good idea?
Which businesses are banking’s closest and toughest competitors? What services do they offer that compete directly with banks’ services?
What is happening to banking’s share of the financial marketplace and why?
How have banking and the financial-services market changed in recent years? What powerful forces are shaping financial markets and institutions today?
Copyright © 2013 The McGraw-Hill Companies, Inc. Permission required for reproduction or display.

9. Appendix: Career Opportunities in Banking and Financial Services
1-9
Appendix: Career Opportunities in Banking and Financial Services
What different kinds of professionals work inside financial firms?
Loan Officers
Credit Analysts
Managers of Operations
Branch Managers
Systems Analyst
Auditing and Control Personnel
Trust Department Specialist
Tellers
Copyright © 2013 The McGraw-Hill Companies, Inc. Permission required for reproduction or display.

10. 1-10
Appendix: Career Opportunities in Banking and Financial Services (continued)
What different kinds of professionals work inside financial firms?
Security Analysts and Traders
Marketing Personnel
Human Resources Managers
Investment Banking Specialists
Bank Examiners and Regulators
Regulatory Compliance Officers
Risk Management Specialists
Copyright © 2013 The McGraw-Hill Companies, Inc. Permission required for reproduction or display.