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Retail Banking / Slide 1
RETAIL BANKING
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Retail Banking / Slide 2
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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Retail Banking / Slide 3
RETAIL BANKING FRAMEWORK
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 / Slide 4
RETAIL BANKING FRAMEWORK
Retail Banking Operational Characteristics
High Volumes
Low Amounts
Minimum Service Time for Customer
Customer Oriented 24 hour availability
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Retail Banking / Slide 5
RETAIL BANKING FRAMEWORKRetail Banking Operational Characteristics - (contd...)
Multiple Service Mechanisms
Multi Language
Multi Currency
Multi Branches
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Retail Banking / Slide 6
DDA AND SAVINGS ACCOUNTSAccount Facilities
Statements
Passbook
Check Book
Standing Instructions
Sweep-in
Sweep-out
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Retail Banking / Slide 7
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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Retail Banking / Slide 8
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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Retail Banking / Slide 9
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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Retail Banking / Slide 10
MONEY TRANSMISSION
Checks
Check Book
Guaranteed/Certified Checks
Stop on Check
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Retail Banking / Slide 11
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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Retail Banking / Slide 12
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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Retail Banking / Slide 13
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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Retail Banking / Slide 14
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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Retail Banking / Slide 15
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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Retail Banking / Slide 16
MONEY TRANSMISSION
Other Remittances
Funds Transfer
Mail Transfer
Telegraphic Transfer
Direct Debits Direct Credits
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Retail Banking / Slide 17
LOANS AND ADVANCES
Loan Disbursements
Commitment stage
Single Disbursement
Multiple Disbursements
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Retail Banking / Slide 18
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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Retail Banking / Slide 19
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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Retail Banking / Slide 20
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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Retail Banking / Slide 21
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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Retail Banking / Slide 22
LOANS AND ADVANCESLoan Collateral
Property
Automobiles
Financial Securities
Time Deposits
Non-standard Collaterals
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Retail Banking / Slide 23
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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Retail Banking / Slide 24
RETAIL BANKING SPECIAL SERVICES
Type of Special Services
Safe Deposits and Lockers
Bill Payment
Estate and Trusteeship
Stock and Share Dealing Marketing Customer Information
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Retail Banking / Slide 25
RETAIL BANKING SPECIAL SERVICES
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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Retail Banking / Slide 26
RETAIL BANKING SPECIAL SERVICES
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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Retail Banking / Slide 27
RETAIL BANKING SPECIAL SERVICES
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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Retail Banking / Slide 28
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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Retail Banking / Slide 29
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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Retail Banking / Slide 30
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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Retail Banking / Slide 31
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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Retail Banking / Slide 32
THANK YOU
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