Question

Owners and managers have cited three reasons for the creation of large financial firms or universal banks. What are these reasons?

Answer 1

There are so many reasons for setting up universal bank

some listed advantages of universal banks are as follows

1. Economies of scale :-universal banking results to economic efficiency,which results in lower costs higher output and better services and products in india
2. Gain investors trust;-Universal bank holds the stakes of many companies and these co. can easily get other investors to invest in their business because investors have full faith on universal banks because they knows that universal bank will closely look over the activities performed by these companies
3. profitable diversification;-universal banks diversify their activities so they can use the same financial experts to provide same financial services which saves cost for universal banks
4. Easily marketing;-they can easily market all their financial products and services through their amny branches they can ask their existing clients to buy their other products and services.which requires less efforts because of their large well established brand name so these are some reason which might be cited up by managers and owners for setting up universal banks