Which are the Chief characteristics of financial services?

The chief characteristics of financial services are:

1. Intangibility: Financial services are intangible. They cannot be seen or touched but can only be experienced. For example, the satisfaction derived from investment advisory services.

2. Inseparability: The production and consumption of financial services are simultaneous. For instance, when a bank loan is granted, the bank's service (loan provision) and the customer's consumption of that service (receiving the loan) occur at the same time.

3. Heterogeneity: Financial services are not standardized and vary from customer to customer based on their specific needs. For example, insurance policies are tailored to each customer's unique needs.

4. Perishability: Financial services cannot be stored for future use. If not used, they perish. For example, unused bank overdraft facilities.

5. Dependence on intermediaries: Financial services often depend on intermediaries like brokers, agents, and advisors to reach customers.

6. High degree of risk: Given the nature of financial services, there is always a high degree of risk involved. This could be due to market volatility, credit risk, operational risk, etc.

7. Knowledge-based: Financial services are knowledge-based. They require a high level of expertise and knowledge to be effectively delivered and used.

8. People-based: The delivery of financial services is heavily dependent on the people who provide them. The quality of service is often determined by the skill, expertise, and behavior of the people providing the service.