Fund-based and fee-based banking services are two different types of services provided by financial institutions. While both types of services are related to financial transactions, they differ in terms of their nature and how they generate revenue for the bank.

Fund-based Banking Services:
Fund-based banking services are those services that involve the deployment of funds by the bank to earn interest or profit. These services primarily include lending and borrowing activities. Here are some key points about fund-based banking services:

1. Lending Activities:
- Banks provide loans and advances to individuals, businesses, and governments.
- These loans can be in the form of personal loans, home loans, car loans, business loans, etc.
- Banks earn interest on these loans, which is a major source of their income.

2. Borrowing Activities:
- Banks also borrow funds from various sources such as other banks, central banks, and the money market.
- They borrow funds to meet their liquidity requirements or to lend further.
- The interest paid on these borrowings is a cost for the bank.

3. Interest Income:
- The interest earned on loans and advances is a primary source of income for banks.
- The interest rates charged on loans are generally higher than the interest rates paid on deposits, allowing banks to earn a margin.

Fee-based Banking Services:
Fee-based banking services are those services that involve the collection of fees or charges for providing specific financial services. These services do not involve the deployment of funds like in fund-based services. Here are some key points about fee-based banking services:

1. Financial Advisory Services:
- Banks provide financial advisory services to individuals and businesses.
- These services include investment advice, portfolio management, retirement planning, etc.
- Banks charge fees for providing these services, which can be a fixed fee or a percentage of the assets under management.

2. Brokerage and Trading:
- Banks offer brokerage services for buying and selling securities such as stocks, bonds, and derivatives.
- They earn fees or commissions on the transactions executed on behalf of their clients.

3. Transactional Services:
- Banks provide various transactional services such as account maintenance, remittances, issuing letters of credit, etc.
- They charge fees for these services to cover the costs incurred in providing them.

4. Wealth Management:
- Banks offer wealth management services to high-net-worth individuals.
- These services include personalized investment strategies, estate planning, tax planning, etc.
- Banks charge fees based on the assets under management or a percentage of the returns generated.

In conclusion, fund-based banking services primarily involve lending and borrowing activities, while fee-based banking services involve charging fees for specific financial services. Fund-based services generate income through interest earned on loans, while fee-based services generate income through fees charged for various services offered by the bank.