topic b Flashcards
(24 cards)
financial institutions
bank of england
banks
building societies
credit unions
national saving and investments (nsi)
payday loans
pension companies
insurance companies
pawnbrokers
bank of england
uk’s central bank. responsible for setting interest rates and controlling the national debt as well as issuing legal tender
sets interest rates
controls inflation
limited tools
not available to public
banks
an org that handles financial transactions and stores money on behalf of its customers
reliable
secure ‘private’
limited loss
protects against £85000
conflicts
lower interest rates
building societies
an organisation that handles financial transaction and stores money on behalf of its members
good interest rate
securely stores money
protects against £85000
less branches. availability
limited
credit union
not profit org that habdles financial transation on behalf of it members “coop”
benefits members
good morals
limited funds, opporunties
not majorly commericaly driven
national savings and investments
government backed organisation that handles financial trasaction on behalf of its members
gov backed
secured
money earnable
bad interest rates
not available from high streets
insurance companies
profit making companies that protects against the risk of loss
protects
secures loss
can be expensive
premiums fee charged
pension companies
business which sell policies to individual to help save to fund their future retirement
plans
employees pay into scheme
based on income
only can pay into on agreed date
pawnbrokers
individuals that loan money against an item of value
quick injections
ability to repurchase
secured against assets
based on own value
interest rates
lower amount of value
payday loans
org that offers short term loans at very high rates of interest
helps cashflow in emergency
immediate
anyone is accessible
very expensive
risk of threats
high interest rates
consumer protection
financial conduct authority (fca)
financial ombudsum service (fos)
financial service compensation scheme (fscs)
consumer credit legislation
office of fair trading (oft)
fiancial conduct authority
regulated and authorisates
financial operations
authorise
protects consumers
supervise
enforcement
Authorising which firms/individuals can enter
the financial markets
Setting standards for the industry
financial ombudsmen service
allows consumers to make compliants against financial instituions
impartial
protects consumers rights
gives advice
a law
helps decision making
financial service compensation scheme
pays a sum of money to protect against losses when financial operations fail
protects up to £85000
create schemes
protects consumer rights
fca authorised
office of fair trading
responsible for protecting consumers interest through investigating forms of anti competitve behaviour
advice
educates
provides safety
legislation- consumer credit
protects consumers through paying with credit cards
law
interest rates
enforce regulation
fairness
protects against borrowing
consumer advice
citizen advice
ifa - indepdent financial advice
price comparison
money advice service
debt counsellors
iva - individual voluntary arrangements and bankrupty
independent financial advice
professional providing independent advice on financial aims
imparital
bias
no commission
limited resources
charged fee
citizen advice
charities giving advice on any issue
free
imparital advice
independend
low income find useful as ease acess
lack of knowledge
limited
voluntary
price comparison websites
websites containing prices for similar goods or services within different markets to help consumers locate the best deals
24/7 access
saves money - cheaper?
ease comparison
personalised
assymemetric info
online access
Advantages
• Quick / easy to access
• Can be accessed anywhere with internet connection
• Available 24/7
• Can make multiple comparisons of different retailers in one search
• Saves money by finding cheapest option
• Use of filter can allow like for like comparisons
• Can use the reviews to support decision to buy
• Further discounts/offers/incentives may be available
Disadvantages
• Not all retailers will be shown
• Not all products may be listed
• Product might be unavailable/discontinued
• No opportunity to negotiate
• Specialist advice unavailable
• May not compare like-for-like features such as guarantees
• Could be other costs not shown in the headline price (e.g.
delivery)
• Information could be outdated
• Could be biased if companies are able to pay to have their
products given priority
• Product information might be more limited
money advice serivce
a government service providing individuals with free and impartial financial advice
gov backed
free
no bias
budgeting
generic advice
online only
debt counsellors
professional offering independent advice on managing debts
specalists
fca authorised
budgetting support
expensie
limited advice
iva bankrupty
gov org which allows individuals to declare themselves bankrupt
gov backed
no bias
manages debt
effects credit score
fees charged
communication
bank branch - limited access, full range of services , upselling
teleophone- 24/7, automated, efficent but confusing
online banking- limtied , 24/7 acess , security issues
mobile banking- 24/7, efficient, security issues
postal banking - delays, losing or stoeln, going paper less
