LP2 Test - How To Work In Financial Services Products?
The Financial Services Products and Solutions (LP2) course helps students learn about and understand customer needs, how financial services organizations and professionals find and meet these needs, and important retail financial products like savings accounts, investments, and tax wrappers.
LP2 Overview
An overview of the goods and services the UK financial services sector offers is given in this unit.
The personal financial lifecycle, a concept that covers some of the most important financial decisions we make throughout our lives and may involve the usage of financial products and services, is the first topic covered.
This will serve as an example of the value of financial planning and the part that taxes play in it.
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Then, it will concentrate on financial products and services, including how they operate, how they are administered, and how they are marketed.
We will discuss the idea that all financial products are subject to some level of risk throughout this course.
It introduces financial incentives, including pensions and ISAs, before examining how the financial services sector aids in wealth accumulation, as well as the numerous asset classes and collective investments that serve as the foundation for financial goods and tax-advantaged investments.
Before discussing how assistance, financial counseling, and continuing reviews guarantee that a person stays on track to achieve their financial goals, mortgages, loans, and credit cards are covered.
Introduction to Financial Services
Which Financial Services And Products Are Most Prevalent?
The Fundamentals Of Financial Products And Services
Learn the fundamentals of the goods and services a bank or credit union offers before going there.
Savings Accounts
Having a checking or savings account with a financial institution that permits deposits and withdrawals Excellent for tracking spending and paying payments.
Deposit Accounts
A money-safekeeping deposit account with a low interest rate is kept with a bank or other financial institution. Excellent for short to medium-term or emergency savings.
Cash Management Accounts
Checking accounts with few transactions that charge a greater minimum balance in exchange for a higher interest rate.
This can be beneficial for saving for emergencies or for sporadic costs.
Vouchers Of Deposit
Savings accounts that reward you for committing your funds for a specific amount of time have a greater interest rate (six months, 12 months, etc.).
Mortgages
loans for home purchases where the house itself serves as security.
Home Equity Loans
Home equity loans are provided to homeowners with a maximum loan amount set at a proportion of the owner's equity in the property.
Car Loans
loans taken out to pay for the purchase of a car. It is often unsecured and depends on the borrower's moral character and financial soundness. The car is the collateral.
Individual Loans
Customers of banks may apply for unsecured loans.
Credit Cards
Unsecured, revolving loans with a card that are typically used for purchases but can also offer cash advances. The maximum chargeable amount is determined by the credit card company.
The amount charged to the account as well as the interest levied by the issuer are both covered by the monthly payments made by borrowers. Following payments, those funds are once more available for borrowing.
Cash Cards
With a checking or savings account, you can get a card that lets you make ATM withdrawals and purchases at stores, which are then deducted from your account balance.
Card Readers
Cards are given to people who have checking or savings accounts. These cards can be used at ATMs to get cash out or put money in, but not at points of sale.
Payroll Checks
The checks that banks write to confirm that the bank customer has the funds necessary to cover the checks.
The bank or credit union is liable for these checks. For instance, closing fees for a property purchase would require a cashier's check.
Cashier's Checks
documents that are purchased with cash, provided with a receipt, and then converted by the recipient into cash.
When someone does not have a checking account, it is frequently used to pay bills.
Personal Checks
Checks that are written against an account or purchased with cash are made valid by having the payee's name filled out and the owner's signature on them. less frequently used today.
Transfers Via Wire
A method of transferring money from one person to another, frequently used to send money abroad.
The exchange of foreign currencies
converting money from one nation into another.
Deposit-only Boxes
A box at a bank is used for storing personal items that can only be opened with a bank employee's help using a lock and key.
People Also Ask
What Are The Financial Products And Services?
- Individual Banking (debit/credit cards, checking and savings accounts, etc.)
- Commercial Banking (merchant services, checking accounts and savings accounts for businesses, treasury services, etc.)
- Loans (business loans, personal loans, home loans, automotive loans, working-capital loans, etc.) (business loans, personal loans, home loans, automobile loans, working-capital loans, etc.)
What Is Financial Product?
A financial product is a tool that enables a person to invest money (for instance, through shares), borrow money (for instance, through credit cards, loans, or bonds), or save money (for example, through term deposits).
What Are The Financial Services?
Financial services are offered by the financial industry, which includes a wide range of businesses that handle money, such as credit unions, banks, credit card companies, insurance companies, accounting firms, consumer finance companies, stock brokerages, investment funds, and even individuals.
Conclusion
The Financial Services Products and Solutions (LP2) course is especially good for team leaders in contact centers and back-office workers in the life, pension, and long-term savings industries.
About The Authors
James Davis - James Davis keeps you updated daily with the best shopping tricks, hacks, and frugal living tips that you won’t find anywhere else. He also talks and writes about creative ways to save money, job opportunities like clever ways to make money from home, great jobs for teens, and online jobs that pay well.James also enjoys working on Social Media campaigns for major brands. He believes in creating a personal relationship between the brand and its consumers. He is very much into taking the corporate out of the brand and bringing it down to the level where consumers can feel comfortable interacting and taking the brand seriously.