Introduction
The finance and banking concerns the business of a bank with activities like money management, investment etc. It can be treated as a science of the managing money and other assets related to business.The other activities include safeguarding deposits, making funds and leding money to the borrowers. The idea of finance and banking started it's operation from the middle age.
Finance and banking technology
Finance and banking industry is expanding it's arena rapidly due to the worldwide technological advancements. The technological tools, which are being largely utilized by this finance and banking industry are machine-readable cards like debit cards, credit cards, ATM cards and the most effective service this industry is getting from it's technology counterpart is the online service, through which one will be able to connect with finance and banking industry 24 hours a day and 7 days a week.
The situation
The expectations of customers are increasing and to meet their expectations finance and banking industry needs to be more organized and consolidated and at the same time regulatory requirements are also need to be reassessed. It is a challenge of this industry to establish a firm relationship with the customers and at the same time making the profitability and stability of its own industry.
Basic services of finance and banking industry
The basic services adhered with this finance and banking industry include issuing money in the form of coins, banknotes or debit cards, receiving deposits of money, lending money and processing transactions. One of the major services of finance and banking industry include issuing banknotes as legal tender and sometimes offer some subsidiary financial services to gain more profit.
Finance and banking is a system to deal with financial resources. It's prime target is to facilitate gaining maximum wealth of a business establishment.
Financing
Financing is the act of acquiring funds from external investors. The prime external source of finance is debt. Debt includes loans from banks and bonds purchased by customers. The other external source of fund is equity, which includes stock.
Striking features of finance and banking service
Basic features and operations of
finance and banking services include:
- Purchase: Purchase is the commonest type of finance and banking transaction. Purchase is the process of acquiring anything in exchange of money or something of equal value.
- Loan: It is the sum of money normally lent for temporary use. Loan is given to the borrower with a condition that borrower will repay the loaned amount along with designated interest in due time.
- Mortgage: Mortgage is a temporary kind of pledge of property to the creditor with an obligation to repay the debt. Mortgages are normally used by individuals and businesses establishments.
- Account: It is a statement which summarizes transactions in the form of debits, credits, accruals and adjustments.
- Credit-card: It is a card made of plastic material used by customers to buy products or services without any cash with a condition to repay the cash amount at a later date as defined by the provider. Finance and banking organization gain their profit by charging fees on credited amount
- Debit-card: It is a type of card used by customers to withdraw cash or pay for goods and services. Debit card works like checks.