Difference between fund based financial services and fee based financial services
Answers
Explanation:
➡️Some financial services are fund based and others are non fund based. A fund based financial service involves credit offered by banks in the form of loans, overdrafts and other cash transactions. In a non-fund based financial service the bank does not deal with funds or cash transactions.
There are different types of financial services available in our economic ecosystem where the financial institution initially invest some amount of own money for the future benefits and these are known as fund based financial services.
For example : Credit cards,Loan, Leasing etc.
On the other hand;
There are different types of financial services which are only availed by the deposited amount of user's money and these are known as the fees based financial services.
For example : Debit cards, ATM services, insurance policies etc.