In the modern market banking services are available from a variety of sources, including banks. Over the last 20 years banks have faced strong competition and have radically expanded their role to provide a wider range of services for their customers. Nowadays, people want to do their banking when and where they want. The methods of banking are therefore changing rapidly. Technological developments such us the growing use of telephone, TV and internet banking, have had a major impact on the industry throughout the world. More and more customers are organ sing their finances using these methods. Traditionally, the major banks have operated through their branches, but in recent years, technological developments have enabled banks to cut the number of branches and centralize their “back office” processing operations.
Nowadays online banking is becoming increasingly popular. Banks like the Internet’s massive potential as a marketing tool and its low costs compared to investing in branches.
Telephone banking has become one of the many services banks customers expect. The telephone service is quick and convenient, it is also extremely flexible and can meet the needs of our clients. The 365-day-a-year service means people can access their accounts even on Christmas day to check balances, transfer money between accounts or pay bills.
Internet banking gives you access to your account at any time between 4a.m. and midnight, 7 days a week, offering a convenient and secure way to bank online . This service is free. With Internet banking you can :
-check your balance;
– transfer money between your own accounts ;
TV banking gives you the convenience to manage your finances in the comfort of your own home.
You can use the service to:
-view all your full statement;
– set up and cancel payments arrangements;
-view direct debits.
Commercial banks provide a wide range of services to business. They can offer both long-term capital, in the form of loans and mortgages and short-term capital, in the form of bank overdrafts. An overdraft permits the firm “to go into red” on its account up to an agreed maximum with a charge on the amount over drawn. The most commonly used accounts by businesses are the following: current account (is a type of account used by firms for paying their bills and for receiving payments from their customers; deposit account (is a type of account used to keep surplus cash for a short period. It pays interest on money left in the account); foreign currency accounts (provided to firms which trade overseas). Standing orders are used when a firm authorised a bank to make regular payments to somebody from its current account. Direct debit is used when a firm gives instruction to its bank to allow somebody else to take an amount of money from its account, especially to pay bills. Mortage is a sum of money lent by a bank or a building society for the purchase of a house or property. Credit transfer is used to pay into the current accounts of other people and to receive payments from customers. Statement of account is a printed record of all the transactions carried out on a customer’s bank account within a certain period.
Factoring is a flexible from of finance which advances money to a company. In fact, whit factoring a company sells all its trade debts at below face value to a bank (the factor) in return for immediate cash. The factor is responsible for collecting the money owed and accepts losses in the case of non payment. The major advantage of factoring is its flexibility because the amount you can borrow grows directly with yours sales.
Leasing is a method of hiring expensive equipment such as machinery, office equipment or cars. The person who takes out a lease, the leasee, pays a premium or rate for a fixed period of time. The person who grants the lease, the leasor, is responsible for repair bills. He also substitutes machinery with new up-to-date models after an agreed period of time. Advantages in using this method are both that lease rents are tax deducible and that lease has always new equipment or vehicles without buying them.