Examples of Banking Services

The banking services are all the operations that are offered to the customer in a bank. For example: open a savings account, make an investment, request a loan. And although they are sometimes used as synonyms, banking services should not be confused with financial services (that is, loan and investment), since the latter are only part of the services offered by banks (and are also offered by other types of entities).

Banking services are usually available to both natural and legal persons (that is, to individuals and to Business or organizations), and that not only simplify the tasks of consuming and managing money, but also constitute a requirement to integrate into the contemporary global economic network. In any case, there are significant sectors of the world population that are not banked, that is, they do not have access to this type of service, especially in the underdeveloped countries.

Examples of banking services

Normally, banking services involve money management, through a series of products or instruments such as:

1. bank accounts. They are financial contracts between the client and the bank, which allow the latter to manage the money of the client to make loans and investments, and they give the client a set percentage of profits as a interests. These accounts can be of different types:
   • Current account. It is intended for the daily and immediate management of money. The customer accesses instruments that facilitate consumption, such as checks and debit or credit cards.
   • Savings account. It is intended to collect the personal savings of an individual and offer them resources to invest, that is, to make their money grow.
   • payroll account. It is intended to receive the salary that a worker earns from the organization where he works.
2. Credit cards. They are purchasing instruments of goods and services based on indebtedness, that is, with which the bank lends money to its clients and offers them specific plans to repay it, generally charging interest in the process. These cards usually have a limit according to the customer's ability to pay and are one of the main forms of international payment that exist today.
3. checkbooks. They are currently uncommon payment instruments, which consist of the issuance of a personal promissory note, that is, of a document that is given to the seller at the time of purchase and that the latter can then redeem at the bank for the money due.
4. Bank transfers. They are mechanisms that allow the sending and receiving of money between bank accounts, whether they are from the same bank or from different banks. They can be used as a payment mechanism without involving physical money.
5. Investments. They are financing contracts in which the bank uses the client's money in specific ways, in exchange for the payment of a higher than normal return, in the form of interest payments. This may mean lending the money to other customers, buying stocks and debt bonds, or any other investment method the bank handles.

References:

• "bank" in Wikipedia.
• "Banking services" on consumer library.
• "Banking services" on Practical Business Skills.

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