FNSINC402 - Financial Products and Services: Comprehensive Analysis

This document provides a comprehensive solution to an FNSINC402 assignment, focusing on financial products and services. It analyzes the limitations of comparison websites, differentiates between debit and credit cards, and explores the impact of a new home loan product. The assignment also examines how financial product brokers segment customers, the standards of financial product marketing practices, the changes needed for consultative selling, and the adoption of cross-selling techniques by financial institutions. The document references relevant books and journals to support its findings, offering a detailed overview of the financial landscape and marketing strategies within the sector.

FNSINC402 - Products
and Services

Table of Contents
Activity 1.........................................................................................................................................3
Activity 2.........................................................................................................................................3
Activity 3.........................................................................................................................................4
Activity 4.........................................................................................................................................4
Activity 5.........................................................................................................................................5
Activity 6.........................................................................................................................................5
Activity 7.........................................................................................................................................6
REFERNCES:..................................................................................................................................7
Books and Journals:....................................................................................................................7

Activity 1
Using comparison websites is a good way to obtain up-to-date information about financial
products and services. Explain some of the limitations of these comparison systems.
(Explain systems that can be accessed to obtain up-to-date information on products,
services, and competition).
Activity 1 Answer
It is identified that comparison between websites are very important for small business as
it assists in making their products available in the market. It is identified that comparison sites
are used by customers in order to take best products from the online market. In comparison sites
there are almost all small business that gives many benefits to the consumer. Consumer can take
extra benefits at minimum cost so that's why they choose comparison websites in order to select
the best employees (Muir and et. al., 2017). It is essential for an organisation that they should
give support to the consumers with their financial products. Finance is the key component that
need by consumers in their daily life so that's why they need to look comparison sites. With the
help of comparison sites customer get up to date information about products, services and
competition which assist in taking better decision. It takes information from various small
business and then transfer on one website with the comparison. But it is analysed that
comparison sites are also get biased and that's why it is the limitations of comparison sites. It is
very important for a consumer that they should take care when they are filtering information
because it may be give wrong information.
Activity 2
In your own words, describe the difference between a debit card and a credit card.
(Describe the products and services used by the organisation or sector and their purpose).
Activity 2 Answer
Debit card and credit card both are very important for an organisation and individuals as
it assists in complete their payment. It is identified that debit card is issued by banks to the
customers from which consumers can access funds with any cash withdrawal and a paper
writing. Whereas credit card is the debt instruments that used for financial transaction. The main
difference between these two card are debit card is access only when a person has money in their

account. But credit can be accessed even when a person has not money in their account but with
the specified over limit (Jenik and Lauer, 2017). The financial products are used by banking or
financial institutions in order to raise funds and maintain financial assistance in the economy.
Their main purpose is that they make money available to the individuals when consumer
demands from the market.
Activity 3
Assume one of the big four banks in Australia introduced a new home loan product which
was highly competitive for the other 3 banks. Describe the most likely outcome.
(Describe products and services used by competitors that are similar to those of the
organisation).
Activity 3 Answer
Commonwealth Bank of Australia introducing a new product i.e. home loan for general
public so that they can take benefits from the products. It is very obvious that making a home is
the dream of every individual. For that purpose Commonwealth Bank of Australia launching
their new products with low interest as compared to their competitors. It is analysed that because
of their new products other competitors are in dilemma that the bank can capture the market. It
becomes more competitive because of their products (Gerard and Johnston, 2019). It is identified
that due to their new products customer get attracted and move on to purchase their products. It
is very tough for Commonwealth Bank of Australia to launch this products because there are
many similar products that are selling in the market already. It is not easy for Commonwealth
Bank of Australia to make differentiate products. All other competitors are sell but at very higher
interest rate. But Commonwealth Bank of Australia provide this products at low rate that make
difference from other competitors.
Activity 4
Explain how a financial products broker might segment customers and potential
customers. Which segments would be the most attractive to them, and why?
(Explain different marketing methods and approaches to promoting or selling financial
products and services).
Activity 4 Answer

It is very important for an financial products brokers that they should segment their
general customers and potential customers. It is identified that with the help of segment from
overall population to find out the potential one plays a crucial role in the organisation. Broker
can easily find their potential customers and take a necessary corrective actions in order to
promote their financial products and services (Gleeson and et. al., 2019). There are many
methods which assist in promotion of financial products and services in the market so that every
customers get knowledge about their products. Methods of promotions are building of financial
content portfolio, investment in search engine optimization, etc. These methods are very useful
for brokers as they can easily attract the customers in order to increase their sales.
Activity 5
Describe the general standards of financial product promotional and marketing practice
that would be reflected in organisational policy and procedures. (Identify organisational
policy in terms of promotional and marketing strategies).
Activity 5 Answer
It is very important for financial institutions that they should follow all standards and
policies that are make for marketing and promotional practices. It is very important for an
organisation that they should make sure about their promotional practices that they should be in
ethics. It is identified that day to day fraudulent activities are rising at a fast speed so for that
purpose Australian Securities and Investments Commission (ASIC) released good practices
guidance with related to RG 234 Advertising financial products and advice services. It is
necessary for financial institutions in order to perform good practices. It is making for the
purpose of reducing the fraud cases as it can be seen in many cases such as in advertising that
gives fraudulent or misleading statements. It is identified that in their guidelines it is stated that
organisation should not use very less information about the products, the tone that they use for
advertisement should be sound able and clear out the purpose, the text that they use should be
clearly written and don't be ambiguous.
Activity 6
Outline some of the changes organisations may need to make to their sales promotion
procedures to consider the trend to ‘consultative selling’ (which places the emphasis on the
salesperson becoming a “trusted advisor” to the customer).

(Describe ethical and regulatory conditions that must be adhered to in promoting products
and services to clients).
Activity 6 Answer
It is identified that consultative selling is the important approach that assist in selling the
products and services in market with the help of building personal relationship to customers.
That means in this type of selling marketers give focus on establishing long term relationship
with their customers. It makes the seller a trusted advisor that always guide customers for
choosing right products. But it should be ethics that they adopted in the promotional tools. That
means it never hurt someone's sentiments and doesn't provide misleading information.
Activity 7
Outline why financial institutions have adopted ‘cross-selling’ techniques to grow their
businesses.
(Outline general client characteristics and needs for the organisation or sector).
Activity 7 Answer
Cross-selling is the type of selling in which banking institutions provide complementary
products to the existing customers (Shi, Paul and Paramati, 2020). For example, a person who
opened a account in the bank. In that case bank suggest many types of services so that they can
adopt them. It make the selling process very easy with the help of finding their potential
customers. Every person who opened bank accounts want some benefits such as safety and
security of funds. But now banking make their services more up graded as they can provided
additional benefits with the help of cross selling.

REFERNCES:
Books and Journals:
Gerard, K. and Johnston, M., 2019. Explaining microfinance's resilience: the case of
microfinance in Australia. Globalizations, 16(6), pp.876-893.
Gleeson, D., and et. al., 2019. Financial costs associated with monopolies on biologic medicines
in Australia. Australian Health Review, 43(1), pp.36-42.
Jenik, I. and Lauer, K., 2017. Regulatory sandboxes and financial inclusion. Washington, DC:
CGAP.
Muir, K., and et. al., 2017. Exploring financial wellbeing in the Australian context. Report for
financial literacy Australia. Centre for Social Impact & Social Policy Research Centre,
University of New South Wales, Sydney.
Shi, Y., Paul, S. and Paramati, S. R., 2020. The impact of financial deepening on income
inequality: Empirical evidence from Australia. International Journal of Finance &
Economics.