Financial Product versus Financial Service

From Open Risk Manual

Financial Product versus Financial Service

A Financial Product is a tangible and discernible item produced by a Financial Service organization.

Examples of products:

  • Financial Contracts
  • Information Technology Artefacts (ATM machines, POS, Credit Cards)


A Financial Service is a less concrete item (service) that is either offered on its own right or as a significant element of a tangible financial product.

For example:

  • Consulting with clients on appropriate financial products for specific purposes
  • Providing advice on risk management / portfolio management