The document discusses the changing role of banks due to financial innovations and deregulation. It makes two key points:
1) Statement A describes banks' original role of accepting deposits and providing loans, but Statement B argues this has changed with new financial products and varying regulations between countries.
2) While banks still facilitate deposits and loans, their activities have expanded through off-balance sheet transactions and fees to compensate for lost business to new financial innovations. However, their core economic function of enabling growth through lending remains intact.
The banking industry appears to be undergoing a renaissance driven by changing consumer behavior and technical innovation. Software is eating the industry. In retrospect, we can see how the first wave of innovation came in areas such as online account access and payments. Changing consumer behavior (such as the shift to mobile) and the use of big data has enabled increasingly complex transactions (such as lending and asset management) to move online. Consumers have largely stopped going to retail branches, and reserve the occasional branch visit for major one-off transactions.
Our first investment in the financial services industry came many years ago with an investment in LendingClub. We put both equity and debt into the company, making a sizable purchase of loans via the platform itself. We saw the company’s potential to bring marketplace dynamics and software disruption to the lending industry. The end goal for borrowers and investors on the platform was simple: lower cost loans for borrowers, increased yields for investors, and high levels of customer satisfaction. As a result, LendingClub has grown into a sizable public company. With experience on the platform and a realization of the potentially transformative nature of this model, we’ve gone on to invest in companies across the online lending space: Kabbage (www.kabbage.com), LendUp (www.lendup.com), and SoFi (www.sofi.com).
The renaissance in financial services has drawn in substantial amounts of venture capital. In the past year alone, the number of fintech deals has grown 16% and the capital funded is up 46%.
While many entrepreneurs develop expertise in the specific segment they intend to disrupt, we’ve noticed that startups usually don’t have the time or resources to look outside their niche and understand how they fit into the larger context of banking and lending markets. To help put the industry in perspective, we developed an overview of the banking industry in the US. What’s remarkable is not only the insights this gives into the financial lives of Americans (be it millenials or seniors), but also the perspective this gives us on the large banks we’ve all come to use. Indeed, consolidation over the last several decades has led the four major banks (JP Morgan, Bank of America, Citigroup, and Wells Fargo) to hold around half of the market’s depository assets.
Today we’re happy to provide the first version of this industry overview. We’ve chosen brevity over depth, so as to provide a snapshot of the overall banking landscape. We’ll continue to iterate on this overview and welcome questions and comments. In subsequent posts, we plan to provide deeper dives into sectors that are of interest to both ourselves and others. We look forward to contributing to what feels like yet another opportunity to be at the front door of history-making companies.
This is a overview of the business of banking, including retail, business and investment banking. We have also included introductions to other financial services like credit cards, credit rating agencies, mutual funds and the business processes used to process loan transactions, credit card payments, and a range of other banking services and products. Useful for anyone who would like an overview of the banking industry. Downloads will be allowed for 30 days. After that you can contact me if you would like the file.
The banking industry appears to be undergoing a renaissance driven by changing consumer behavior and technical innovation. Software is eating the industry. In retrospect, we can see how the first wave of innovation came in areas such as online account access and payments. Changing consumer behavior (such as the shift to mobile) and the use of big data has enabled increasingly complex transactions (such as lending and asset management) to move online. Consumers have largely stopped going to retail branches, and reserve the occasional branch visit for major one-off transactions.
Our first investment in the financial services industry came many years ago with an investment in LendingClub. We put both equity and debt into the company, making a sizable purchase of loans via the platform itself. We saw the company’s potential to bring marketplace dynamics and software disruption to the lending industry. The end goal for borrowers and investors on the platform was simple: lower cost loans for borrowers, increased yields for investors, and high levels of customer satisfaction. As a result, LendingClub has grown into a sizable public company. With experience on the platform and a realization of the potentially transformative nature of this model, we’ve gone on to invest in companies across the online lending space: Kabbage (www.kabbage.com), LendUp (www.lendup.com), and SoFi (www.sofi.com).
The renaissance in financial services has drawn in substantial amounts of venture capital. In the past year alone, the number of fintech deals has grown 16% and the capital funded is up 46%.
While many entrepreneurs develop expertise in the specific segment they intend to disrupt, we’ve noticed that startups usually don’t have the time or resources to look outside their niche and understand how they fit into the larger context of banking and lending markets. To help put the industry in perspective, we developed an overview of the banking industry in the US. What’s remarkable is not only the insights this gives into the financial lives of Americans (be it millenials or seniors), but also the perspective this gives us on the large banks we’ve all come to use. Indeed, consolidation over the last several decades has led the four major banks (JP Morgan, Bank of America, Citigroup, and Wells Fargo) to hold around half of the market’s depository assets.
Today we’re happy to provide the first version of this industry overview. We’ve chosen brevity over depth, so as to provide a snapshot of the overall banking landscape. We’ll continue to iterate on this overview and welcome questions and comments. In subsequent posts, we plan to provide deeper dives into sectors that are of interest to both ourselves and others. We look forward to contributing to what feels like yet another opportunity to be at the front door of history-making companies.
This is a overview of the business of banking, including retail, business and investment banking. We have also included introductions to other financial services like credit cards, credit rating agencies, mutual funds and the business processes used to process loan transactions, credit card payments, and a range of other banking services and products. Useful for anyone who would like an overview of the banking industry. Downloads will be allowed for 30 days. After that you can contact me if you would like the file.
Banks or Bonds? Building a Municipal Credit MarketMauro Bassotti
Asian cities cannot finance the infrastructure investments they need without accessing private domestic savings. Urban growth has multiplied demand for investment in
water systems, wastewater collection and treatment, roads, and other facilities. At the same time, decentralization strategies have shifted much of the responsibility for this investment to local governments. Private financing can be attracted to urban infrastructure
in different ways—including direct private investment in income-earning facilities—but perhaps the most critical avenue will be the local credit market. In a world of decentralized governance, domestic credit markets must be capable of generating long-term financing for cities and their infrastructure agencies.
This document brings together a set
of latest data points and publicly
available information relevant for
Banking Industry. We are very
excited to share this content and
believe that readers will benefit from
this periodic publication immensely.
Bank innovation - PwC Study on When the Growing Gets Tough: How Retail Banks ...Jeff Grill
As the United States emerges from the financial crisis, retail banks are striving to outperform their competitors while grappling with unprecedented regulatory challenges and shifts in consumer behavior. For more information see http://www.pwc.com/us/en/financial-services/publications/viewpoints/viewpoint-when-the-growing-gets-tough.jhtml
Bus106 wk11 ch10 the financial services industry in canadaBhupesh Shah
BUS106 The Financial Services Industry in Canada - from UNDERSTANDING CANADIAN BUSINESS, 7th Canadian Edition (custom publication for Seneca); published by McGraw-Hill
Industry and firm profile- MBA course papergirish0984
The objective of this document is to study a particular industry and a firm within that industry. This document describes the Financial Services Industry and JP Morgan bank.
Retail Banking India 2015 - Now and PredictionsMayur Nanotkar
The document highlights
- the Retail Banking Industry in India using the stats
- future predictions for the retail banks in India in terms of Technological advancement and Customer Engagement
- Top 10 Predictions from the World of Retail Banking.
Debriefing of the Initio's Breakfast club session of June 2019 dedicated to open banking.
3 topics addressed:
Disintermediation: Should Banks Still Be Afraid?
How Customer Centricity Killed your Innovation
The Marketplace: An Unexpected Journe
Banks or Bonds? Building a Municipal Credit MarketMauro Bassotti
Asian cities cannot finance the infrastructure investments they need without accessing private domestic savings. Urban growth has multiplied demand for investment in
water systems, wastewater collection and treatment, roads, and other facilities. At the same time, decentralization strategies have shifted much of the responsibility for this investment to local governments. Private financing can be attracted to urban infrastructure
in different ways—including direct private investment in income-earning facilities—but perhaps the most critical avenue will be the local credit market. In a world of decentralized governance, domestic credit markets must be capable of generating long-term financing for cities and their infrastructure agencies.
This document brings together a set
of latest data points and publicly
available information relevant for
Banking Industry. We are very
excited to share this content and
believe that readers will benefit from
this periodic publication immensely.
Bank innovation - PwC Study on When the Growing Gets Tough: How Retail Banks ...Jeff Grill
As the United States emerges from the financial crisis, retail banks are striving to outperform their competitors while grappling with unprecedented regulatory challenges and shifts in consumer behavior. For more information see http://www.pwc.com/us/en/financial-services/publications/viewpoints/viewpoint-when-the-growing-gets-tough.jhtml
Bus106 wk11 ch10 the financial services industry in canadaBhupesh Shah
BUS106 The Financial Services Industry in Canada - from UNDERSTANDING CANADIAN BUSINESS, 7th Canadian Edition (custom publication for Seneca); published by McGraw-Hill
Industry and firm profile- MBA course papergirish0984
The objective of this document is to study a particular industry and a firm within that industry. This document describes the Financial Services Industry and JP Morgan bank.
Retail Banking India 2015 - Now and PredictionsMayur Nanotkar
The document highlights
- the Retail Banking Industry in India using the stats
- future predictions for the retail banks in India in terms of Technological advancement and Customer Engagement
- Top 10 Predictions from the World of Retail Banking.
Debriefing of the Initio's Breakfast club session of June 2019 dedicated to open banking.
3 topics addressed:
Disintermediation: Should Banks Still Be Afraid?
How Customer Centricity Killed your Innovation
The Marketplace: An Unexpected Journe
L'étude DigitaLuxury de Team DigitaLuxury est mis à disposition selon les termes de la licence Creative Commons Attribution - Pas d’Utilisation Commerciale - Pas de Modification 3.0 non transposé.
Fondé(e) sur une œuvre à http://www.digitaluxury.fr.
Les autorisations au-delà du champ de cette licence peuvent être obtenues à http://www.digitaluxury.fr/contact...
L’étude DigitaLuxury Trend Report 2012 a pour objectif de dresser un panorama des tendances en termes de prises de parole digitales multi-levier et d'en tirer des recommandations pour les acteurs du marketing des maisons de luxe .
L’analyse présente les résultats en termes de présence digitale des marques de luxe sur la fin d’année 2012, en France et est basée sur 150 des plus grandes marques de luxe. Illustré par plus de 80 best practices.
A project report on credit dispensation by commercial banks to the personal s...Babasab Patil
A project report on credit dispensation by commercial banks to the personal segment with special emphasis on loan against property lap By Babasab Patil
This PPT gives the Introduction to the financial services, their strengths, weakness, opportunities as well as Trends in Banking & Financial Services.
This presentation also includes the Recent developments in the finance field and the strategies to manage demand and capacity within the Financial Service Industry. It also presents the information about the major types of financial services and 7Ps of the same.
CBIZ Banking & Financial Services Quarterly Newsletter - Aug 2020CBIZ, Inc.
The August issue of CBIZ's Banking & Financial Services Newsletter includes a conversation with Lori Bettinger, Co-president of Alliance Partners and President of BancAlliance, on the banking sector and opportunity to make loans across other industry sectors. Also covered are underwriter questions to expect with your insurance renewal in this hard market and 8 potential COVID-19 employment liability claims. As always, links to several additional resources and webinars included.
Introduction and HistoryAlly Bank, a subsidiary of Ally Fina.docxnormanibarber20063
Introduction and History
Ally Bank, a subsidiary of Ally Financial Inc., offers cus-
tomers a different type of bank and a different type of
banking experience. Unlike traditional banks with hun-
dreds of branches and thousands of ATMs, Ally Bank has
only two offices and no ATMs. What the company lacks
in physical presence, it makes up for with a 24/7 call cen-
ter and instant online banking. What it saves by not pay-
ing to rent a large number of locations, it returns to the
customer in the form of competitive interest rates on cer-
tificates of deposit (CDs), as well as savings, money mar-
ket, and checking accounts. And instead of maintaining
its own ATMs, it piggybacks on existing ATM networks
and compensates its customers for any fees incurred.
Although Ally Bank is a new name, it is not a new com-
pany. Ally Bank and its parent company—Ally Financial
Inc.—originally stemmed from General Motors Acceptance
Corporation (GMAC), which was formed in 1919. GMAC
was the main provider of automotive financing to General
Motors dealerships. As the demand for cars grew, so did
GMAC. Its success in auto financing provided it with the
capital to expand into other product areas, such as insur-
ance, direct banking, mortgage, and commercial finance.
In 2006, General Motors spun GMAC off as a sepa-
rate entity. Although it was still the primary source of
funding for General Motor vehicle purchases, the bank
had grown its portfolio and exposure in a number of
markets. Because of its diversification into the subprime
mortgage market, the 2008 financial meltdown caused
a liquidity crisis at GMAC and set the stage for the cre-
ation of Ally Bank.
The banking division of GMAC was formed in
the final days of 2008 as part of a year-end deal with
the Federal Reserve. On December 24, 2008, GMAC
officially became a bank holding company. Five days
later on December 29, 2008, the US Treasury announced
it would invest $5 billion of its Troubled Asset Relief
Program (TARP) funds in GMAC and receive pre-
ferred shares in return.1 In May 2009, GMAC officially
changed its name to Ally Bank.2 The rationale for the
name change stemmed from the impending bankruptcy
of General Motors and a desire to distance the bank from
the automobile manufacturing company and its relation-
ship with that firm.
Ally Bank is classified as a direct bank,3 which means it
has no bricks-and-mortar locations. This form of banking
has cost-saving benefits for the bank as well as investment
opportunities for customers. The bank is able to save on
overhead costs and transfer those savings to its customers in
the form of higher interest rates if it chooses to do so. With
increasing consumer comfort in web-based technology and
the Internet, online banking may be the heir apparent of
the industry. By offering only online services, Ally Bank has
enjoyed these costs savings since its inception.
Ally Bank returns its savings to customers in three
ways. First,.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
Buy Verified PayPal Account
Looking to buy verified PayPal accounts? Discover 7 expert tips for safely purchasing a verified PayPal account in 2024. Ensure security and reliability for your transactions.
PayPal Services Features-
🟢 Email Access
🟢 Bank Added
🟢 Card Verified
🟢 Full SSN Provided
🟢 Phone Number Access
🟢 Driving License Copy
🟢 Fasted Delivery
Client Satisfaction is Our First priority. Our services is very appropriate to buy. We assume that the first-rate way to purchase our offerings is to order on the website. If you have any worry in our cooperation usually You can order us on Skype or Telegram.
24/7 Hours Reply/Please Contact
usawebmarketEmail: support@usawebmarket.com
Skype: usawebmarket
Telegram: @usawebmarket
WhatsApp: +1(218) 203-5951
USA WEB MARKET is the Best Verified PayPal, Payoneer, Cash App, Skrill, Neteller, Stripe Account and SEO, SMM Service provider.100%Satisfection granted.100% replacement Granted.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
1. ASSIGNMANT # 2
ARE BANKS REALLY DYING
The banks are facing increased competition due to financial deregulation and increased information dissemination and
accessibility. Banks are losing loans due to easier access to foreign capital markets or self issuing of securities. Banks
therefore are losing revenue to be more efficient and competitive.
HAS BANKING CHANGED
Banking is becoming a more volatile industry due, in part, to deregulation which has opened up individual banks to the full
force of the financial marketplace. At the same time the number and variety of banking services has increased greatly due
to the pressure of intensifying competition from non-bank financial-service providers and changing public demand for more
conveniently and reliably provided services. Adding to the intensity of competition, foreign banks have enjoyed success in
their efforts to enter countries overseas and attract away profitable domestic business and household accounts.
There are Two Statements:
A: "Banking business is the same all around the world and nothing much has changed over centuries. Banks are
collecting deposits and use them to provide loans. Their profit comes from the difference of high interest rate on
loans and low interest rate paid for deposits. "
B: "You are mistaken. The banking has changed considerably due to numerous financial innovations. Its role
within the economic system has also changed and it is not the same in different countries."
Both the statements, A and B, have very valid points and neither one of them is actually right or wrong. In fact I would
say, they are complementary to each other and give a better definition of the role of banks in general.
Taking statement A first, this describes the original function of the bank since its creation. It is an institution, which
provides individuals with the facilities to safe-keep their savings in deposits within the bank. With this set of assets, the
banks can loan out a certain amount of its capital as loans to individuals or corporations. Providing funds and stimuli for
economic growth and development. In order to maintain some earnings, to pay off its employees, debts and bills, banks try
to earn some profits through the difference gained from interests on loans and the interests paid on deposits. These
functions are the most basic tasks carried out by the banks found throughout the world, and is similarly carried out by the
nation.
Statement B was correct in saying that there have been numerous financial innovations since the early beginnings of the
first banks. Innovations like
Mutual Funds
Forward Contracts
Futures and Options derivatives
providing insurance
are relatively new. How and what the banks can participate in however vary from nation to nation. For instance, banks in
the U.S. used to mainly deal in savings and providing loans. It wasn’t allowed to participate in offering insurance and
securities.
Due to financial innovations, such as
Money market mutual funds
commercial paper
Submitted to: Mr.Mohsin Razzaq 1
2. ASSIGNMANT # 2
junk bonds
Banks have been forced to conduct “off-balance sheet” activities, such as charging fees to their customers and loan sales,
to compensate for the loss of business these financial innovations have caused. Due to the difference in regulations in
different countries, banks and their functions differ throughout the world. American banks weren’t even allowed to have
equity in commercial holdings. However this has changed with a new act passed by Congress in 1999, to make U.S. banks
more competitive. While simultaneously, securities and insurance companies are now allowed to enter the banking
business, in order to compete with banks. There is no more any separation between the entities. In the case of United
Kingdom, the banks took part in traditional banking facilities and also provided services for securities issuing. However it
was prevented from providing insurance. Thus the banking roles, varies from country to country.
However, statement B’s inference that the roles of banks in the economy have changed. In fact it continues to provide the
services it originally established and set out to accomplish. That is to provide facilities for deposits and loans. Through
this, its most important role can be carried out, which is the creation of money to ensure the continual economic growth of
the nations. Despite all the new financial innovations, these can be considered subsets of its activities. It is important to
note that improper activities from these innovations, which could lead to major losses, could lead to major economic
instability.
Can you explain why many of these changes have led to significant problems for bank managers and
stockholders?
The net result of recent changes in banking has been to put greater pressure upon bank earnings, resulting in more volatile
returns to bank stockholders and an increased bank failure rate. Some experts see banks' role and market share shrinking
due to restrictive government regulations and intensifying competition. Banks have also become more innovative in their
service offerings and in finding new sources of funding, such as off-balance-sheet transactions. The increased risk faced by
banks today, therefore, has forced bank managers to more aggressively utilize a wide array of tools and techniques to
improve and stabilize their earnings streams and manage the various risks they face.
Submitted to: Mr.Mohsin Razzaq 2
3. ASSIGNMANT # 2
Problems and Projects
1. You have just been hired as the marketing officer for the new First National Bank of Vincent, a suburban banking
institution that will soon be serving a local community of 120,000 people. The town is adjacent to a major metropolitan
area with a total population of well over 1 million. Opening day for the newly chartered bank is just two months away, and
the president and the board of directors are concerned that the new bank may not be able to attract enough depositors and
good-quality loan customers to meet its growth and profit projections. Your task is to recommend the various services the
bank should offer initially to build up an adequate customer base. You are asked to do the following:
a. Make a list of all the services the new bank could offer, according to current regulations.
b. List the type of information you will need about the local community to help you decide which of the possible services
are likely to have sufficient demand to make them profitable.
c. Divide the possible services into two groups--those you think are essential to customers and should be offered beginning
with opening day, and those that can be offered later as the bank grows.
d. Briefly describe the kind of advertising campaign you would like to run to help the public see how your bank is different
from all the other financial service providers in the local area.
Banks can offer, if they choose, a wide variety of financial services today. These services are listed below. However,
unless they are affiliated with a larger bank holding company and can offer some of these services through that
company, it may be more limited in what it can offer.
Regular Checking Accounts
Management Consulting Services
NOW Accounts
Letters of Credit
Passbook Savings Deposits
Business Inventory Loans
Certificates of Deposit
Asset-Based Commercial Loans
Money Market Deposits
Discounting of Commercial Paper
Automobile Loans
Plant and Equipment Loans
Retirement Savings Plans
Venture Capital Loans
Non-auto Installment Loans to Individuals
Leasing Plans for Business Property and Equipment
Residential Real Estate Loans
Home Improvement Loans
Security Dealing and Underwriting
Personal Trust Management Services
Discount Security Brokerage
Commercial Trust Services
Foreign Currency Trading and Exchange
Institutional Trust Services
Personal Financial Advising
Submitted to: Mr.Mohsin Razzaq 3
4. ASSIGNMANT # 2
Personal Cash-Management Services
Insurance Policy Sales
To help the new bank decide which services to offer it would be helpful to gather information about some of the
following items in the local community:
School Enrollments and Growth in School Enrollments
Estimated Value of Residential and Commercial Property
Retail Sales
Percentage of Home Ownership Among Residents in the Area
Number and Size (in Sales and Work Force) of Local Business Establishments
Major Population Locations (i.e., Major Subdivisions, etc.) and Any Projected Growth Areas
Population Demographics (i.e., Age Distribution of the Area)
Projected Growth Areas of Industries in the Area
Essential services the bank would probably want to offer includes:
1st day After some time period
Regular Checking Accounts Home Improvement Loans
Online Banking Automobile and other Consumer Loans
Utility Bills acceptance Business Inventory Loans
Money Market Deposit Accounts Residential Real Estate Loans
Transfer of Payments Retirement Savings Plans
NOW Accounts Insurance policy
Passbook Savings Deposits Credit Cards
Discounting of High-Quality Commercial Notes Hire Purchase
Certificates of Deposit Opening of LCs
ATMs Hajj Schemes
Collection of Cross Cheques
Demand drafts
As the bank grows, opportunities for the profitable sale of additional services usually increase, especially for trust
services for individuals and smaller businesses and personal financial advising as well as some commercial (plant and
equipment) loans and leases. Further growth may result in the expansion of commercial trust services as well as a
widening variety of commercial loans and credit guarantees.
The bank would want to develop an advertising campaign that sends a message to potential customers
that the new bank is, indeed, different from its competitors. Small banks often have the advantage of offering highly
personalized services in which their customers are known and recognized and services are tailored to each individual
customer's special financial needs.
Quality and reliability of banking service are often more important to individual customers than is price. A new bank must
try to sell prospective customers, most of whom will come from other banks in the area, on personalized services, quality,
and reliability, all three of which should be emphasized in its advertising program.
Submitted to: Mr.Mohsin Razzaq 4