Banks provide services to its customers in multiple ways. It divides the services basis the customer type.
Retail Banking : All the services which a bank provides to its individual customer comes under Retail Banking. Ex. Opening saving and current account (CASA),Cheque Book services , debit cards , credit cards, wealth management, loans, fund transfer etc.
Corporate Banking: All the services which a bank provides to its corporate customer comes under corporate banking Ex. Cash management services , salary accounts , sweeping balances from multiple accounts to one account, trade solutions, treasury services, loans , fund transfers etc.
One thing you will notice that some of the solutions are common for both the segments corporate and retail. The difference is in the way bank facilitates to both the segments . For example a retail customer can do fund transfer by issuing a cheque , going to branch , through ACH , Internet banking etc. the common characteristic of a retail fund transfer will be that transaction amount will be low , single beneficiary will be there. where as in case of corporate the amount will be higher , fund transfer can be done for multiple customer in one shot , facility to upload the transaction by uploading a file which will consist of details of the transactions.
Come back to different type of banking . For better understanding i will divide the different services under several headers.
1. CORE BANKING
2. LENDING SERVICES (Loans/Leasing services)
3. CREDIT CARDS
4. SECURITIES
5. BROKERAGE SOLUTION
6. WEALTH MANAGEMENT
7. TREASURY SERVICES
8. TRADE FINANCE
9. LIQUIDITY MANAGEMENT
10.CASH MANAGEMENT SERVICES(Also known as transaction banking)
As this blog is mostly dedicated to CORE Banking, in this section I will make you aware about different services which comes under different headers. In later sections I will cover all the services provided under CORE Banking and will go in depth of each services.
1. CORE BANKING
Customer Creation, account opening (CASA),Debit Card, Term/Recurring
deposits ,payments/remittances,Teller solutions,etc
2. LENDING SERVICES
Personal/house/vehicle loans,commercial loans , leasing services, loan
syndication , collection etc
3. CREDIT CARDS
Card issuance , acquiring ,collection, gift cards etc
4. SECURITIES
Depository management, Channel finance ,Securities lending services etc
5. BROKERAGE SOLUTION
Retail and institutional trading stations,order management, Bank
payment ,Depository systems,Front Office, Middle Office Risk Management, Back
Office Clearing ,Settlement and Accounting solutions
6. WEALTH MANAGEMENT
structured products,relationship services,Financial Need Analysis,Brokerage ,
Alternate/innovative investments,Mutual Fund Sevices etc
7. TREASURY SERVICES
Money Markets, REPO , Fixed Income ,FX etc
8. TRADE FINANCE
LC , Gaurantees , Collections
9. LIQUIDITY MANAGEMENT
Sweeps,
