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Financial Supermarket

 
Investment Dictionary: Financial Supermarket

A company offering a wide range of financial services (e.g. stock, insurance and real-estate brokerage).

Investopedia Says:
For the consumer, a financial supermarket can offer convenience and efficiency, since his/her money is not being continually shifted from one institution to another. For the institution, an all-encompassing relationship with the consumer is more profitable than handling just one aspect of a customer's financial needs.

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Banking Dictionary: Financial Supermarket
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Popular name for a company offering a market basket of financial services. The financial supermarket became part of the banking industry's vocabulary in the 1980s, when nonbanking financial companies, unrestricted by banking regulations, began offering financial services in competition with banks and thrifts.

The Gramm-Leach-Bliley Act of 1999 authorizing banks and non-bank financial services companies to enter each other's businesses, signals the beginning of a new era in marketing financial services. With the Gramm-Leach-Bliley Act, banks have the authority to market mutual funds, annuities and life insurance, in addition to federally insured deposit accounts. The biggest drawback to one-stop shopping at a bank or brokerage company is consumer unwillingness to put all of their eggs, financially speaking, in one basket.

 
 

 

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Investment Dictionary. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved.  Read more
Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more