Articles By financial banking

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Banking has evolved with time. The entire infrastructure and concept of traditional piled files and documents has given away to a much more sophisticated and sleek outlook. Moreover with technology growing with a rapid pace the time consuming factor has been replaced with doorstep banking methods which permits you to carry on with your banking 24/7 without having to pay the bank any visit. Money orders and transfers have taken a backseat for Online Money transfers, Card and mobile banking. Even Security trading, Stocks and Mutual Funds can be accessed by traders and investors alike without finding the need to consult each other or pay each other any visits.

The Banking sector is considered to be the largest Business provider. It is diversified with every section catering to one particular transaction. It could be either individual/personal or business to business banking. The kind of banking where the financial institute directly executes transactions with the consumer is called Retail Banking. Retail Banking services include savings and checking accounts, personal loans, credit cards, debit cards, etc, etc.

Modern Day Banking has become extremely hectic with loads of transactions occurring at the same time across the globe. With financial regulations stepping up, there are businesses that require banking 24/7. With technology evolving on a regular basis, new concepts of banking are being introduced now and then. With the birth of the internet, all major transactions have become faster and secured. Ditto for mobile banking, banking has been at its convenient best. Gone are the days when you had to wait till the teller counted your number and you silently followed his instructions either to deposit an amount to or have a cheque encashed.

Commercial Banking also known as business banking is a financial intermediary provided by financial institutes. A commercial bank is defined as an institution which accepts deposits, offers business & personal loans. Commercial banks are co-owned by a group of individuals & are run to make profit. Even though they offer services to individuals, their prime goal is to receive heavy deposits & provide business loans. The Commercial Banking/ Financing model in India is classified into two parts, project finance and working capital finance. This kind of banks or banking system is different from retail banking and investment banking.

Business Banking or Commercial Banking refers to an area of banking primarily dealing with deposits and loans from corporations or large businesses. It is a separate entity from retail or investment banking as it doesn’t involve the provision of financial services direct to consumers. It makes loans to business and consumers, its primary liabilities are deposits and assets loans and bonds. Business banking for commercial or any small scale business is daunting. Commercial loans are obtained to increase or expand an on going business or to support new business ventures. Commercial loans are provided according to their status of business.

On a common ground Banking refers to a business activity of accepting & safe guarding money owned by other individuals & lending out this money to earn a profit. On general terms banking needs a bank account that enables you easy access to your monetary transactions such as writing cheques, preparing demand drafts for cash transfer, online & mobile banking and withdrawing money from ATMs. Banking is a safe option for transactions as money deposited is insured, you pay for the convenience of banking and moreover certain accounts do pay you interest for money deposited for term periods. While choosing a bank certain factors such as interest rate offered, minimum deposit required to open an account, limitations of account & availability of funds from the account that you choose to open.

Modern day banking has evolved a lot with time. Gone are the days when customers queued in front of a teller’s window awaiting their turn to get their cheque encashed or deposited in their accounts. The current day banking scenario is much more savvy and fast. From net banking to phone banking the customer has been provided with numerous facilities to make banking much easier, safer and comfortable. Mobile banking, the new-age phone banking facility also referred to M-banking or SMS banking is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a mobile phone. Mobile banking today is most often performed via SMS or the Mobile Internet but can also use special programs called clients downloaded to the mobile device.

A Loan is a kind of a debt where a borrower borrows a desired amount of money from the bank, keeping a security along with the condition that the sum received will be paid back in Equated Monthly Installments along with a rate (fixed/floating/flat) of interest: i.e - an amount charged on the loan issued. A deposit is a kind of an investment where the customer invests a certain amount of money in a scheme for a certain period of time in exchange of an interest which a bank pays at the end of the tenure of that scheme. With the kind of influx and financial regulations that is going on in the finance sector, various financial houses, private and public sector banks offers suitable schemes to their customers to either opt for a loan or to go in for a deposit.

Loan is a kind of a debt that a banking/financial organization lends to a borrower for his personal or professional reasons. Initially the money isn’t directly handed over to the borrower, rather like every other debt instruments some security is provided against the amount borrowed. This particular amount is then repaid in forms of installments, not necessarily of the same size though. For this particular service the bank does charge a fee termed interest on the amount borrowed. On legal terms a loan is a contractual promise of a debtor to repay a sum of money in exchange for the promise of a creditor to give another sum of money.