Definition o fbranch banking


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Definition o fbranch banking

  1. 1. Definition of BankA financial institution licensed as a receiver of deposits. There are two types of banks:commercial/retail banks and investment banks. In most countries, banks are regulated bythe national government or central bank.Read more: explains BankCommercial banks are mainly concerned with managing withdrawals and deposits aswell as supplying short-term loans to individuals and small businesses. Consumersprimarily use these banks for basic checking and savings accounts, certificates of depositand sometimes for home mortgages. Investment banks focus on providing services suchas underwriting and corporate reorganization to institutional clients.While many banks have both a brick-and-mortar and online presence, some banks haveonly an online presence. Online-only banks often offer consumers higher interest ratesand lower fees. Convenience, interest rates and fees are the driving factors in consumers’decisions of which bank to do business with. As an alternative to banks, consumers canopt to use a credit union.Read more:
  2. 2. Definition of Branch BankingEngaging in banking activities such as accepting deposits or making loans at facilities away froma banks home office. Branch banking has gone through significant changes since the 1980s inresponse to a more competitive nationwide financial services market. Financial innovation suchas internet banking will greatly influence the future of branch banking by potentially reducing theneed to maintain extensive branch networks to service consumers.Read more: explains Branch BankingThe Riegle-Neal Interstate Banking & Branching Efficiency Act of 1994 authorized well-capitalized banks to acquire branch offices, or open new ones, anywhere in the UnitedStates outside their home states after June 1, 1997. Most states passed laws enabling interstatebranching prior to that date. Branch banking networks are gradually evolving into multistatefinancial services networks where depositors can access their accounts from any banking office.Read more: branch, banking center or financial center is a retail location where a bank, credit union, or other financialinstitution (and by extension, brokerage firms) offers a wide array of face-to-face and automated services to itscustomers.[citation needed]Branch banking is the act of doing ones banking business at a location that is separate from thebanks central business location. Many large and small banks use branch banking in order to extendthe reach of their services to different locations in a community, state, or country. Smaller branchesare also less expensive to operate, and often easier for customers to access, while providing all of thefeatures of a larger bank.Historically, branch banks were part of a larger building, often found in strip malls or even in grocerystores or discount stores, sharing the location with another business. Today,however,branch banking can take place at a number of different locations, and many banks buildindividual branch locations that are independent of other businesses. Each type of location is stillconsidered a branch bank.In general, most of the services offered at a large bank can be completed ata branch bankinglocation. Locations found in grocery and discount stores often do not have as manyoptions as other branch services; it is often not possible to "drive-through" at these locations,because the bank is located inside the store. In addition, though deposits can be made at this type ofbankbranch, safe deposit boxes are typically never available, because the security is simply not highenough. Otherwise, these locations typically offer all other services, and generally include anautomated teller machine (ATM).Other types of bank branches generally do have the option to drive through, when they arestandalone brick-and-mortar businesses. These may also offer the option of safe deposit boxes.There are generally tellers available to provide assistance and answer questions.The branchbanking that can take place includes actions such as making withdrawals, makingdeposits, cashing checks, and opening checking and savings accounts, or purchasing certificates ofdeposit (CDs), just to name a few.
  3. 3. For many people, the only business they will ever do with their bank is through branch banking. Thecentral location of the bank may be too far away to visit, and the branches of the bank will provide allthe necessary services one may need. It is also possible to apply for loans, such aspersonal loans,vehicle loans, or even mortgages, through branch locations. With all of theseoptions, branch banking has made banking much more convenient for many people, in addition tothe large numbers of people who simply do all their banking online. Banking operations refer to certain banking operations carried out by a bank in certain specificbranches. BankingFeaturing groundbreaking technology, our branch banking solutions provide unprecedented opportunities to enhance customerrelationships and banking processes. These solutions support not only business process management, but also automated onlineaccount acquisition, cross-selling opportunities, customer experience optimization, teller access to a broad range of customerinformation and more. • ATM Services Fiserv delivers reliable, 24x7 automated banking services featuring built-in security and integration with applications within the Premier platform. Our comprehensive ATM services offer flexible options to accommodate the needs of your financial institution. • Business Process Manager Business Process Manager, our complete account opening and process management solution, helps your organization to define and automate nearly every interoffice task. You can speed account setup, reduce staffing needs and minimize data entry errors with Business Process Manager. • Collections Collections simplifies the collection and recovery process, reducing delinquency and charge-offs. A real-time, browser- based solution, Collections offers an arsenal of powerful tools for effectively managing, monitoring and performing all collection activity associated with delinquent accounts. • ConvergeIT: VoIP ConvergeIT: VoIP is the only VoIP system designed for and integrated with Fiserv account processing systems. The powerful and easy-to-use phone system can help you enhance service, integrate business continuity services, reduce operating costs, unify branch operations and improve efficiencies. • Direct Banking Growing consumer demand for online banking services and advancements in paperless technology have created a considerable opportunity for financial institutions to expand their deposit base and realize significant cost savings. The applications that make up our Direct Banking suite work together in any combination to provide automated online account acquisition and integrated direct banking services. • EFT Solutions Our comprehensive EFT Solutions offer anytime, anywhere ATM and POS network access, EFT processing, credit and lending processing, reliable ATM driving and monitoring, complete card management and a wide range of products for the prevention of fraud. • ePort Making online account acquisition faster and easier than ever before, ePort enables your organization to collect new account applications over the Internet and efficiently manage sensitive customer information. • Integrated Teller An advanced teller system, Integrated Teller provides your customer service staff with prompt access to each
  4. 4. customer’s entire portfolio, helping them complete transactions and answer questions more quickly. Predefined and customizable reports supply tellers and supervisors with real-time transaction and productivity information. • Teller By offering immediate access to a wide range of customer information, Teller enables bank staff to perform the most common financial transactions quickly and accurately. Featuring advanced options for online security and customer activity analysis, this easy-to-use application helps enhance the experience that customers have with your organization. Banking and itsAdvantagesBranch banking is a system where the banking business is carried on through a networkof branches spread throughout the length and the breath of the country. The head officeof the bank is located in a big city or a state capital. In the early period of development ofbanking in England there were only a few banks. Today in England most of the bankingbusiness is carried on by five big banks namely, the Midland, the Lloyds, the Barclays,the West Minister and the National Provincial Subssequently National Provincial Bankand the West Minister Bank were merged to form West Minister Bank. They control 75%of the banking business through their 13,500 branches.Advantage of Branch Bankingi) Large Scale OperationsBranch banking system possesses large financial resources. It has a number of branches.A huge financial resources enable branch banking to provide agricultural and industrialloan to large number of people. It can employ officers to carry on increasing financialresponsibilities in the sphere of management. The presence of an efficient staff is anasset to a banking company. This advantage is not available to unit banking.ii) Geographical Spreading of RisksIn the branch banking system, the bank can distribute risks geographically. Banks areoperating through several branches. So they can diversify both deposits and assets.Deposits are mobilised from places where savings are in plenty. Loans and advances aremade to those areas where there is scarcity of capital and interest rates are high.iii) Remittance FacilitiesThe branch banking has the branches which are spread all over the country. So it is
  5. 5. easier to transfer funds from one branch to another at a lesser cost. Unit banking systemcannot offer this facility. In the unit banking system transfer of funds is effected throughcorrespondent banks. The cost of transfer of funds is high.iv) Economy in Cash ReservesOne of the important advantages of branch banking is that it results in an economy ofcash reserves. When a branch experiences shortage of cash it can be easily met bytransferring cash from some other branch. This naturally results in economy of cashreserves. But the unit bank maintains a higher cash reserve in order to meet therequirements of depositors. Keeping of large cash reserve reduces the profitability of thebanks concerned.v) Large Financial ResourcesBranch banking system ensures the advantage of large financial resources. Therequirements of large customers can be easily met. Loans and Advances can be made onmore liberal scale. With large financial resources branch banking has financial strengthand ability to meet any Greater Public ConfidenceBranch banking commands greater public confidence. The reasons for this include hugefinancial resources and branches spread all over the country.