Financial Product versus Financial Service
From Open Risk Manual
Financial Product versus Financial Service
A Financial Product is a tangible and discernible item produced by a Financial Service organization.
Examples of products:
- Financial Contracts
- Information Technology Artefacts (ATM machines, POS, Credit Cards)
A Financial Service is a less concrete item (service) that is either offered on its own right or as a significant element of a tangible financial product.
For example:
- Consulting with clients on appropriate financial products for specific purposes
- Providing advice on risk management / portfolio management
