Question

How can the provision of several types of financial services by one firm be both beneficial and problematic?

Short answer

Managing a diverse portfolio would cause the organization a slew of issues and disruptions.

Step-by-step solution

Step 1. Introduction

The term "financial services" refers to a wide range of activities including banking, investing, and insurance. Financial services are the activity of financial services firms and their personnel, whereas financial goods are the items, accounts, or investments that they provide.

Step 2. Explanation

Credit card firms, insurance companies, investment funds, banks, accountants, consumer financing companies, stock trading companies, and so on are all examples of financial services. Providing a variety of financial services is advantageous since it allows them to cater to different groups and segments of customers based on their interests and tastes. Customers will have a wide range of alternatives, and they will anticipate having everything served under one roof.