Content

  1. Retail Banking
    1. 1 Products of Retail Banking

2. Analytics

2.1 Banking analytics

2.2 Types of Bank analytics techniques

3. Wealth management

3.1 Significance of Wealth Management

4. Robo-advisors

 

1. Retail Banking

Retail Banking is said to be the provision of services done by a bank to the general public rather than to companies, corporations, or other banks. Therefore it is often described as wholesale banking or consumer banking or personal banking.

1.1 Products of Retail Banking

Retail Banking is the method of banks’ approach to the customers for the sale of their products. Therefore it has a large customer-base and consequently, a large number of transactions with small values arise. Thus it is said to be cost-ineffective in a highly competitive environment. Most of the Rural and semi-urban branches of banks do retail banking. In the present-day situation in particular with corporate clients lead to credit risk and market risk which makes retail banking to eliminate market risk. Moreover, retail banking includes a wide variety of products and services as below:

  • Checking and savings accounts: Checking accounts are better for everyday transactions such as purchases, bill payments, and ATM withdrawals. They typically earn less interest. Savings accounts are better for storing money and earning interest and maintaining a monthly limit on what you can withdraw without paying a fee
  • Certificates of deposit – CDs differ from savings accounts where it has a fixed interest rate.
  • Mortgages are a loan from a retail bank that helps a borrower purchase a home by way of using the same home itself as collateral
  • Auto financing helps in hiring a Business contract with tax and cash flow benefits which is popularly used among companies.
  • HELOCs – A home equity line of credits used for fund improvements that increase the value of your home. In a true financial emergency, a home equity line of credit can be a basis of lower interest cash compared to other sources.
  • Foreign currency remittance helps in solving the nation’s economic growth as measured by gross domestic product (GDP).

2. Analytics

Analytics is the systematic calculative analysis of data or statistics. To generate the meaningful patterns of data in the financial industry analytics is used as a tool for detection, understanding, and announcement. To explain, forecast, and get better business performance, an organization possibly applies analytics and generates business data.

2.1 Banking analytics 

Banking analytics are said to be the applications of data mining in banking. Bank analytics aims at improving the banks segment, target, acquire, and retain customers. Besides will focus on improvements to risk management, customer understanding, risk, and fraud and facilitates banks to maintain and grow a more profitable customer base.

2.2 Types of Bank analytics techniques

The three most popular analytics tools in the banking industry for modeling are as follows

  • R programming: R is one of the most popular programming languages and environments usually used in statistical computing, data analytics, and scientific research and marketers to retrieve, clean, analyze, visualize and present data.
  • SAS: Statistical Analysis System is one of the paid software systems that offer high-performance analytics for banking research. SAS is designed to grow customer relationships and maximize the customer experience between customers and the bank so it is called as integrated software suite for advanced analytics which helps to helps to detect, prevent and mitigate financial crime risk and fraudulent activities across the enterprise.
  • Python: In the financial industry python is widespread across the investment banking and evade fund industries, banks to solve assessable problems for pricing, trade management, and risk management proposal and used in build pricing, trade stocks, commodities, FX, etc.

3.  Wealth management

Wealth management is the investment advisory service review the process of wants and needs of high-net-worth clients by providing them with the appropriate financial services and products which includes investment management helpers and other professionals to help direct them.

3.1 Significance of Wealth Management

· Wealth management can be called just investment advice because it helps to bring together all parts of a client’s financial life.

· To keep up on the client’s wealth and make them in meeting their very individual financial objectives.

· It Can Help With Wealth Transfer and protect the client’s wealth and minimize fees and taxes.

· Changes in financial situations can lead to changes in financial objectives where clients meet the update goals and investigate to ensure the rebalance of the client’s financial portfolio.

4. Robo-advisors

Robo-advisors are financial adviser that provides financial advice or investment management and based on mathematical rules or algorithms provide digital financial advice. The algorithms are structured by financial advisors, investment managers, and data scientists, and coded in software by programmers and this software operates its algorithms to automatically allocate, manage and optimize clients’ assets. Thus Investment management Robo-advice is created exclusively for wealth management services and ensures services to a broader audience at a lower cost compared and more than 100 Robo-advisory services in the finance market.

 

About the Author

BankReed Admin

Banking Professional with 16 Years of Experience. The idea to start this Blogging Site is to Create Awareness about the Banking and Financial Services.

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