Banking Retail Mar01

8/8/2019 Banking Retail Mar01

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Retail Banking / Slide 1

RETAIL BANKING


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RETAIL BANKING FRAMEWORK

Services of Banks

Retail Banking

Deposits, Loans, Credit Cards, FX, Remittances

Trade Products

Bills, LCs, Guarantees

Investment Banking

FX, Money Markets, Securities


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Services of Banks - (contd...)

Private Banking

Trusts, Portfolio Management

Fiduciary Services

Pensions, Custody Services, Will & Estate Management

Other services

Correspondent Banking, Bill Payment, Insurance, Safe

Management , Travel


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Retail Banking Operational Characteristics

High Volumes

Low Amounts

Minimum Service Time for Customer

Customer Oriented 24 hour availability


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RETAIL BANKING FRAMEWORKRetail Banking Operational Characteristics - (contd...)

Multiple Service Mechanisms

Multi Language

Multi Currency

Multi Branches


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DDA AND SAVINGS ACCOUNTSAccount Facilities

Statements

Passbook

Check Book

Standing Instructions

Sweep-in

Sweep-out


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DDA AND SAVINGS ACCOUNTS

Account Facilities - (contd...)

Inter-Account Transfer

ATM Cards Credit Cards

Debit Cards

Utilities Bill Payment

Phone Banking


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DDA AND SAVINGS ACCOUNTS

Account Status

Normal

Dormant

Dormant Status Unclaimed Status

Credit Block

Debit Block

Blocked

Restricted Accounts

Staff Accounts

Hold on Accounts


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MONEY TRANSMISSION

Money Transmission Mechanisms

Checks

Drafts

Pay Orders (Bankers Check)

Travelers Checks

Mail Transfers

Telegraphic Transfers Direct Debits

Direct Credits


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MONEY TRANSMISSION

Checks

Check Book

Guaranteed/Certified Checks

Stop on Check


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MONEY TRANSMISSION

Refusal of Payment

Signature differs

Insufficient Funds

Material Alterations / Incompleteness

Payment Stopped

Drawer Deceased / Drawer Insolvent

Account Blocked

Post Stale Date When refused payment correct reason

to be given (Refer to Drawer)


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MONEY TRANSMISSION

Check Refused

Drawers Branch returns Checks to Clearing House

Collecting Bank receives Check returned

Customer Informed

Re-presentation of Check

Penalty for Check Return


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MONEY TRANSMISSIONDrafts

Denomination decided by Customer

Pre-paid at the time of issue

Place of Cashing is fixed

Payable in a different city

Stays at place where paid


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MONEY TRANSMISSION

Payorders

Denomination decided by Customer

Place Issued and Place Encashed are the same

Also called Manager's Checks

Comes back to Branch which issued it.


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MONEY TRANSMISSION

Travelers Checks

Fixed denominations

Place of Cashing is not known

Can be encashed at Branch/Department Stores

Comes back to Branch which issued it.


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MONEY TRANSMISSION

Other Remittances

Funds Transfer

Mail Transfer

Telegraphic Transfer

Direct Debits Direct Credits


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LOANS AND ADVANCES

Loan Disbursements

Commitment stage

Single Disbursement

Multiple Disbursements


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LOANS AND ADVANCES

Loan Repayment

Loan Schedule of Repayment

Repayment Components

Principal, Interest, Insurance Premium, Service

Charges

Due Date for Repayment Penalty for Late Payment


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LOANS AND ADVANCES

Loan Repayment - (contd...)

Balloon Payment

Repayment through Direct Debits

Originated by Bank

Repayment through Direct Credits Originated by Organizations


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LOANS AND ADVANCES

Defaulting of Repayment

Categorization of Past Due Status

Reminders to Loan Parties

Restructuring of Loan

Provision for Bad Loans

Write-off


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LOANS AND ADVANCES

Insurance for a Loan

Property Insurance

Automobile Insurance Installment protection - Accident, Sickness,

Unemployment

Redemption Life Insurance - Borrowers death

before maturity Loan Indemnity Insurance - loss on sale of

collateral


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LOANS AND ADVANCESLoan Collateral

Property

Automobiles

Financial Securities

Time Deposits

Non-standard Collaterals


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RETAIL BANKING SPECIAL SERVICES

Objective behind Special Services

Ancillary Business

Helps Bank in attracting more business

Helps to project an image - Care for Customer

Welfare


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Type of Special Services

Safe Deposits and Lockers

Bill Payment

Estate and Trusteeship

Stock and Share Dealing Marketing Customer Information


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Safe Deposit

Sealed Covers/Packets for Safe Keeping

Instructions regarding Delivery given by Depositor Charges for Service in Advance

Articles in Safe Custody not subject to Lien

Articles will be delivered

To depositor on request

To third party as requested by depositor


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Safe Deposit Lockers

Lockers provided to Customers on Annual Rent

Lockers may be hired by one/more persons Locker keys are handed over to Hirer

Custodian key of locker is with Bank

Annual Rents recovered in Advance Bank Reserves right to break open Locker


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Bill Payment

Agreement with Utility Companies

Payment collected by Branches

Payment submitted to Companies

Service-charge from Customers optional

Charges borne by Utility Companies


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NEW AREAS IN RETAIL BANKINGApplication Processing

Process Loan Applications faster

Evaluate Loan Applications using Customer Data

Global Customer Information System

Usage of Expert Systems for analyzing Credit-worthiness


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NEW AREAS IN RETAIL BANKING

Telephone Banking

Customer requires a push button telephone

All Inputs thru number buttons

Basic Transactions

Account Balance Inquiry

Most Recent Deposit

Inter-Account Transfer Check Book Request

Statement Request


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NEW AREAS IN RETAIL BANKING

Telephone Banking - (contd...)

Other Services

Bill Payment

Interest Rate Inquiry

FX Rate Inquiry

Information on Banking Services


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HOME & OFFICE BANKING

PC Based Banking

Web/Internet based Banking

Interactive TV

24X7 Banking

Except for Get Cash all other transactions

supported


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THANK YOU

Documents

Banking Retail Mar01