Banking
For almost any monetary requirement, people have known to approach banks. Banks have gained a reputation of providing money whenever required. Similarly for those who wish to have keep aside money for safekeeping or for future use, always approach bank for the same.
Banks offer two primary types of accounts viz. Savings accounts and Current accounts. At personal level, people are advised to open and operate savings accounts. Saving account facilitates frequent deposit and withdrawal of cash while the account also earns interest on the balance amount.
Over the period role of banks has undergone great changes and now there are two main banking segments viz.
Retail Banking – The retail banks deal with micro level customers such as individuals, small & medium enterprises and allied segments. Within retail banks, banks are further classified into
• Commercial Bank
• Community Bank
• Community development Bank
• Postal savings Bank
• Private Bank
• Offshore Bank
Business Banking – The business banks provide finance and related services to mid level businesses, corporate firms and large business parties and even top industrialists, wealthy individuals and families. The types of Business banks include
• Investment Banks
• Merchant Banks
Keeping in mind the role of the banks within the society, banks provide vital services credit cards, home loans, personal loans, business loans, bank insurance to their retail customers. While catering to wholesale finance requirements, banks offer project finance, capital raising and risk management services.
The ancillary functions which are performed by Banks include
• Issue of bank notes
• Issue of bank drafts and cheques
• Accepting Term Deposit
• Lending Money services through overdraft, letter of credit, guarantee, performance bonds and so on
• Safe Deposit Locker services
• Foreign currency exchange services
With the arrival of Internet, the working of banks has undergone a massive changeover. Banks have greatly improved their services which have been passed over to their customers.
At the same time, channels through which bank operate have increased. Banks operate through their physical branch, Automated Teller Machine
by mail and over telephone. Bank customers can operate their bank account through bank portals minimizing the need to physically visit the banks. Moreover with the onset of mobile banking, you can even check out your balance and other details through your mobile using a special identification number. Similarly for withdrawing money or accessing any other banking service, you could even visit Automated Teller Machines (ATM) and get access using your bank ATM card which could be located all over your region, country or the globe.
Banking careers are equally interesting and lucrative. Most prospective banking jobs are business analysts, investment bankers, stock brokers, risk management, human resources and customer care, apart from managerial and senior level positions.
Today, Banks provide vital services to their retail and corporate customers. Banking has become the crux of almost every finance market. Banks perform a vital intermediary role in money related services and products.
