18 TYPES OF BANKING SERVICES

1. Cash advances

Banks operate as for-profit corporations. As a result, they must lend money to the general population and earn interest as profit. Banks provide short-, medium-, and long-term loans to borrowers in need after holding a specified level of cash reserves.

2. Clairvoyance

Banks sometimes provide their clients overdraft options that enable them to withdraw more money than they deposited. On the amount of the overdraft, the consumer is charged interest. Cash credit is distinct from bank overdraft.

3. Bill of exchange reduction

Modern banks also often use loans to discount bills of lading. The bank is able to devalue the draft holder using this technique. In a bill of exchange, the debtor accepts the draft that the creditor (i.e., the bill’s holder) has drawn and commits to paying the specified sum when the bill matures.

The bank reimburses the invoice holder for the full amount of the invoice after making some minor adjustments (in the form of commissions). When the bill of exchange matures, the person who received the draft pays the bank.

4. Payment with a check

Checks are given to account holders by banks. Once the bank has issued the funds, the account holder may cash the check.

After proper verification and procedures, banks pay consumers’ checks.

5. Payment and Collection of Credit Instruments

In contemporary business, a variety of credit instruments are employed, including drafts, checks, and promissory notes.

Such tools are used by banks. For the benefit of their clients, modern banks gather and settle credit instruments.

6. Exchange of foreign currencies

Currency institution In order to pay fees in international commerce, banks convert foreign money for local currency at the request of the client.

7. Inquiring

Large organizations make up contemporary commercial banks. In order to provide customers with advice on investments, business, industry, commerce, income, tax, etc., banks employ financial, legal, and market professionals. They may expand their role to include consultancy firms.

However, banks are required by law to provide regulators and governments with client information for a number of reasons.

8. Bank guarantee

Modern commercial banks provide their customers a bank guarantee feature.

The bank may act as the client’s guarantor rather than depositing the customer’s cash when the customer is required to deposit a set amount of money with a government agency or a court for a particular reason.

9. Move money around

Checks, drafts, and other methods of money transfer are ways that banks assist their clients in moving money.

10. Credit Card

With a credit card, the cardholder may make purchases of goods and services in return for prompt payment from the credit card company. The cardholder agrees to pay interest and refund the purchase money to the card issuer in a certain length of time.

11. ATM Services

When executing financial transactions including deposits, withdrawals, and account inquiries, ATM machines take the position of human bank tellers. ATMs primarily provide the following benefits:

Available always
Lower labor costs
Convenient setting

12. Cash card

Direct withdrawals of cryptocurrencies from the cardholder’s account are made via debit cards. A Personal Identification Number (PIN) is often used to validate transactions when using debit cards.

13. Online banking

The act of doing financial transactions from one’s house as opposed to a bank branch is known as “home banking.” It covers requests for direct deposit, bill payment, money transfers, and account setup.

14. Internet Banking

Account holders may view their account information online thanks to banks’ online banking services. Other names for online banking include “Internet Banking” and “Web Banking.”

Customers may do all the typical activities via conventional banks’ online banking services, including wire transfers, balance queries, bill payments, and stop payment requests. Some even provide credit card and loan applications online.

Anytime, day or night, and from any location, you may view your account information.

15. Cellular banking

Performing balance checks, account transactions, payments, credit applications, and other banking tasks through the smartphone is referred to as mobile banking (also known as M-Banking). mobile devices, such as smartphones or Personal Digital Assistants (PDA),

16. Take payment

The primary duty of a bank is to receive deposits from savers or account holders. People who have the ability to save money but cannot invest it in productive ventures provide deposits to banks.

People prefer to put their funds in the bank since they may earn interest that way.

17. Prioritized banking

Free checks, online bill payments, financial counseling, and information are just a few of the services that are often offered as part of preferred banking.

18. Personal finance

High-net-worth customers of the bank have historically received individualized banking and financial services rather often (HNWIs). HNWIs are able to access a greater variety of traditional and alternative assets since they have amassed a lot more money than the ordinary individual.

The goal of private banks is to provide these people with the best possible alternatives.