Wealth maximization is one of the approaches, which involves latest innovations and improvements in the field of the businesses. Maximization reduction financial is term means shareholder wealth or value of the persons those who are involved in the business concern. This objective is a universally accepted concept in the field. It removes technical disadvantages of the profit accumulation. The concept considers the comparison of the value to cost associated with the entity. Total value detected from the total cost incurred for the group. It provides extract value of the business. This criteria provides efficient allocation of resources and it also ensures the economic interest of the society. The goal of maximizing the value of the stock avoids the problems associated with the different goals we discussed above. It is a long term concept based on the cash flows rather than gain and hence there can be a situation where a one makes losses every year but there are cash because of heavy depreciation which indirectly suggests heavy investment in fixed assets and that is the real value and it takes into account the time value of money and so is universally accepted.

maximization reduction financial
Improve Fraud Prevention
Fraud represents a major cost to financial institutions—and one that threatens to escalate with the growing sophistication of
financial criminals. Many banks and credit unions continue to manage fraud according to institutional silos, delegating this
responsibility to individual business units and product types. Institutions should take steps to integrate fraud management
into a centralized, cross-product function that enables the sharing of resources and data, and better coordination of tactical
approaches—resulting in reduced fraud losses and a more consistent customer experience. Institutions should also make use of
the latest detection technologies to reduce their fraud costs: neural networks and predictive software technologies represent
just a couple of innovative solutions being used by institutions to cost-effectively detect and prevent fraud in real-time. Because
fraudsters follow the path of least resistance, institutions that lag the rest of the industry in implementing advanced prevention
and detection solutions make themselves.
Deploy Analytics
Because of the major structural changes that financial institutions are making to their retail product offerings in order to restore
or maintain profitability, customer analytics are more important than ever. Institutions must use analytics to segment customers
in order to better understand revenue opportunities and re-pricing options. They must conduct analyses on revenue sources,
consumer transaction behavior, and sensitivity to fees across their customer bases and within specific customer segments—
and then use the resulting insights to design new pricing strategies and inform revenue replacement efforts. The savvy use of
customer analytics is critical to evaluating customer profitability, predicting consumer behavior, optimizing relationship pricing,
and developing cost-effective marketing tactics.

Maximization reduction financial requires maximum return and try to get a reduction in losses as much as possible.The professional in charge tries to earn maximum returns for the company though proper financial management. He cannot guarantee profits in the long run because of business uncertainties. However, a company can earn high profits even in the long-term, if:
• it takes proper financial decisions.
• And uses the finance of the company properly.
Wealth accumulation is also a main objective of financial management. This means to earn maximum wealth for the owners
So, management tries to give a higher dividend to the shareholders. He also tries to increase the value of the investment.
The value is directly related to the performance of the company. Better the performance, higher is the market value of shares and vice-versa. Therefore one must try to maximize shareholder's value.