Banks are licensed institutions to receive deposits and make loans. They provide many financial services such as wealth management currency exchange and many more. There are several kinds of banks and they provide various services for the better management of lives and with more advanced technology.
The banks provide these services some of the services are as follows:
Overdraft services:
The overdraft service means the service in which the bank allows the customer or the account holder to withdraw money and do the transactions more than the account balance. It’s like the credit facility given to account holders.
Currency exchange:
It is the facility provided by banks that allows the people to exchange their home country’s currency it the other foreign currency. It is the currency exchange with some charges charged by the bank.
Online Banking:
Online banking is the one in which the bank gives the facilities to its customers to carry out the banking transactions of three accounts in easy ways by using their smartphones, tablets, or computer. It’s free of cost without any charges charged by the bank.
Credit cards:
A credit card is a type of credit facility provided by banks that allows the customers to borrow funds from them within their given credit limit. It enables the customers to use them as per their convince.
Debit Cards:
Debit card facility provided by the banks to their customers for the easy transactions and withdrawals for the purchase and electronically most convent way from transactions.
Mobile banking:
Mobile banking is the service provided by the bank to their customers to conduct financial transactions any time anywhere with convince.
Revenue Generation of Banks-
A bank can generate revenue in an exceedingly kind of alternative ways including interest, transaction fees, and financial advice. Traditionally, the foremost significant method is via charging interest on the capital it lends bent customers. The bank profits from the difference between the extent of interest it pays for deposits and other sources of funds, and also the level of interest it charges in its lending activities.
This difference is said because of the spread between the price of funds and therefore the loan rate. Historically, profitability from lending activities has been cyclical and hooked into the wants and strengths of loan customers and therefore the stage of the economic cycle. Fees and financial advice constitute a more stable revenue stream and banks have therefore placed more emphasis on these revenue lines to smooth their financial performance.
DIYA CHOPRA, Content Writer - Finance veda
