Business Analysis : Commercial Banking Centers

Commercial banks are institutions that conduct business for profit motive by accepting public deposits for various investment purposes.

Convenience way of operating banking transactions: Online banking is a highly profitable channel for financial institutions. It provides customers convenience and elasticity and can be provided at a lower cost than traditional branch banking (Williamson, 2006). The convenience of online banking is helping people gain greater control of their finances and contributing to changing patterns in cash withdrawal and day to day money management. (Beer, 2006)

There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).

The World Wide Web has changed our culture in so many ways. People are able to do so many activities over the World Wide Web, it is unbelievable. You can pursue a degree through online universities, communicate with users around the world, purchase goods and services online, and yes, you can bank and pay your bills online. This new technology has enabled us to make payments, maintain a checking/debit card account, balance transfers, all via the web. You can maintain your entire financial portfolio through online banks that provide this feature. There are online banks that can provide interactivity between popular financial management software programs, such as Quicken and Microsoft Money. When using

According to the most recent Federal Reserve study; most of us haven’t set foot in a banking hall in ages. It is a lost battle to banks that opt to use traditional methods to conduct their banking transactions (Gup 2003). By December of last year, close to half of all smartphone users in the United States had transacted some or all of their banking on their phones and iPhones. In the United Kingdom alone, rates of mobile banking transactions doubled over the course of a single year (Scn Education 2001). A banking business that invests in this type of technology gets assured of increasing their customer base.

The scope of the project will be to identify and survey friends, family, and business associates (our target audience) that use social media and online services to determine their banking service preferences. The survey will help financial institutions to determine strategies for developing products and delivering value to customers. The survey team will consist of all 4 teammates – Kevin, Melissa, Jackson, and Greg. To get the desired results, the survey will be brief and ask questions in a simple way that is easy to understand and respond. The goal will be to gather an honest opinion from the subject to add value to the banking community and aid management in the selection and implementation of key banking services that add value to the company/bank. Estimate timeframe to disseminate and review results is approximately one week.

As their name suggests, they only execute their operations online. Customers can only be in contact with their money over the internet since they do not have any physical branches. Because online-only banks require lower overhead costs, they have the capability to offer more free services and higher interest rates compared to a traditional bank. Online banking provides many customers the convenience of handling their business at any physical location as long as they have access to internet. This is possible because of the variety of services that online banks provide despite limiting interaction to only the internet. Some of their services include applying for loans online, transferring funds and paying bills online. While the convenience of being able to access banking through the internet is worthwhile, there are limits to it. For example, making large deposits to the bank is limited and can only be made through the mail, they don’t service cashier checks for transactions, and withdrawing money from the account is very inconvenient. Luckily, the role of the internet in financial transactions is becoming increasingly prominent so that spending money online is more accessible, but it is important to understand both the benefits as well as restraints of online banking. Nowadays, many large brick-and-mortar banks have caught on and provide some online services in attempts to

Bringing consumer and commezrcial banking branches and capabilities to more places in the United States

An obvious threat to the online banking services. Additionally, a cost of living increase is predicted for 2018 of 2.15 percent, this translates into higher costs for basic needs such as groceries, clothes, rent, and power. If consumers have less disposable income they will likely spend less money, for the banks that may threaten the current usage of online banking services. Also, as increases in women entering the workforce continues, the demand for time saving services like online banking will likely continue to increase. This is an opportunity for the banks to reap the financial benefits from this trend. Most recently, privacy breaches such as the recent Facebook controversy may cause technology users to question the security of online banking. The banks make every effort to ensure their online security measures are substantial: however, mobile apps that customers download to their phones can be vulnerable to hacking. If hacking incidents continue to make the news where individuals information has been accessed this could result in a trend away from online services where financial information is vulnerable.

Banking, from its early days of inception, has undergone rapid changes, most especially within the past ten years, also as a result of major world events such as the 9/11 terror attacks and the consequential reactions of governments and within the industry itself. (Morgan McKinley UK)

Retail banking is quite broad in nature - it refers to the dealing of commercial banks with individual customers, both on liabilities and assets sides of the balance sheet. Fixed, current / savings accounts on the liabilities side; and mortgages, loans (e.g., personal, housing, auto, and educational) on the assets side, are the more important of the products offered by banks. Related ancillary services include credit cards, or depository services. Today’s retail banking sector is characterized by three basic characteristics:

Banks can be described as a financial institution where deposits are accepted and credited from the public. There are very essential in the financial systems as it influences the economy of a country. Most of the countries follow a system which is known as fractional reserve form of banking. Under this policy banks holds liquid assets which is equal to only a part of your current liabilities. These institutions are subjected to minimum capital standard which is called Basel Accords. Banks are specific place which will ensure that your finances are secured.

Century National Bank has offices in several cities in the Midwest and the southeastern part of the United States. Mr. Dan Selig, president and CEO, would like to know the characteristics of his checking account customer. To better understand the customers, Mr. Selig asked Ms. Wendy Lamberg, director of planning, to select a sample of customers and prepare a report. To begin, she has appointed a team from her staff and the team has selected a random sample of 60 customers. All the information gathered is tabulated in the table below:

The Century National Bank has offices in several cities in the Midwest and the southeastern part of the United States. Mr. Dan Selig, president and CEO, would like to know the characteristics of his checking account customers. What is the balance of a typical customer? How many other bank services do the checking account customers use? Do the customers use the ATM service and, if so, how often? What about debt cards? Who uses them, and how are they used?

Banking sector viewed from personnel angle has its peculiarities. It is a labour intensive industry and competence of employees has got a bearing on the value of services offered. This being the case, it should have been likely that professionalization of management of personnel should have earned superior precedence but sadly personnel happened to be the most deserted facet of banks management. The emblematic functioning of banks per se does not entail any kind of professional training and is an industry where it is robustly believed that anything can be done by everyone and as one knows no body does much to the affluence of the organization. This feature is additionally noticed by the fact that banks function in a seller’s market with entire nonexistence of an element of competition and the prices of deposits accepted is ascertained by the banks, but by an external agency like the RBI and the GOI. In such a sheltered environment, the call for professionalization of bank management was by no means felt personnel happened to be managed by a non-expert and generally by an average officer who could not or else flourish on banking operations.