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 nonbank 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.
company that offers a wide range of financial services under one roof. For example, some large retail organizations offer stock insurance and real estate brokerage as well as banking services.
company that offers a wide range of financial services under one roof. For example, some large retail organizations offer stock, insurance, and real estate brokerage, as well as banking services. For customers, having all their assets with one institution can make financial transactions and planning more convenient and efficient, since money does not constantly have to be shifted from one institution to another. For institutions, such all-inclusive relationships are more profitable than dealing with just one aspect of a customer's financial needs. Institutions often become financial supermarkets in order to capture all the business of their customers.
