1.
Private Banking
Private banking is a highly professionalized and global management of a
client’s assets. It seeks to meet the investment, wealth, financial and tax
planning needs of individuals or family groups with a high equity.
Private banking is therefore dedicated to financial advisory and asset
management. For this, many variables are taken into account, for which it is
essential to make a good profile of the client:
Risk profile.
Objectives of profitability.
Liquidity needs.
Temporal horizon.
Fiscal situation.
For a private banking service to be as such there must be a bank-client
relationship that stands out for offering a personalized service. It is necessary to
distinguish between customer banking and product banking:
Customer banking: focuses on making profitable the relationship with the
customer, seeing it as a whole and not as a sum of products and services.
Main Features of Private Banking
It satisfies the global needs of the client’s heritage through:
Patrimonial, financial and fiscal planning.
Intergenerational orientation.
Individualized management.
The best and most complete range of products and services.
Based on a strong interpersonal relationship with the client.
Main Private Banking Services
The range of services in private banking is very varied:
Family office services.
Investment in real estate assets.
Availability of a wide range of mutual funds.
SICAV and structured products.
Management of movable and non-movable assets.
Tax optimization of the estate.
Intergenerational planning.
2. Home Banking
It is called home banking to all those resources, tools and provisions aimed at
bringing banking services as close to the customer as possible.
Within this, we can find several types of banking services depending on the
route of communication. Thus, online banking, through telemetric means,
telephone banking, through the telephone to perform various operations and
checks, digital banking, which is a broader term that collects all of the above,
through digital applications.
In general, home banking is a broad concept that consists of carrying to all
corners the possibility of carrying out transactions; transactions of any kind as
far as banking services are concerned.
Today, home banking has stopped being a complement to traditional banking to
play the main role in the operations and consultations of customers, radically
transforming the sector and betting on digital banking , in which some banks see
a Its strategy.
5. Fractional Reserve Banking
Fractional reserve banking is a banking system in which banks hold a fraction
of their clients’ deposits in reserves. This fraction is known as the cash ratio.
Under a fractional reserve banking system, banks are not required to maintain
100% of their customers’ deposits in their reserves. In this way they can lend
the part of the deposits that they are not obliged to keep in reserves, which
allows them to obtain benefits and remunerate the deposits. This system is
based on the assumption that depositors will never withdraw all their money at
the same time.
Fractional reserve banking allows a phenomenon called a bank multiplier to
occur. The bank multiplier is the expansion effect of the amount of money that
occurs when a bank receives a deposit and only maintains a fraction in reserve,
lending the rest. By lending money deposited, the bank allows two people at a
time to have the same money. This process is repeated when the loan recipient
deposits their money into a bank. This is why the monetary base does not
coincide with the monetary aggregates (M1, M2, M3 …).
E-banking system
E-banking system - is a multifunctional software and hardware that enables bank customers to
complete and submit to the Bank for execution documents for payment and other documents,
monitor the status of their accounts, and receive a wide range of relevant financial information
without directing the bank.
There is no need to bring to the Bank payment and other documents on paper - documents in
electronic form have a similar force, and instead of the usual signature on them digital signature
is used.
Benefits of using e-banking system:
Efficiency and profitability. Using the e-banking system allows managing the financial flows of
the company from the office and significantly reduces the cost of working time associated with a
visit to the Bank.
Simplicity and convenience. Automating the process of preparation of payment and other
documents, as well as the presence of the software control for completing the mandatory details
in the documents greatly simplifies the use of subsystems and minimizes operational errors.
Safety and efficiency. E-banking increases the security and confidentiality of workflow with the
Bank; at any time to obtain an extract containing information on all incoming and outgoing
documents in a larger format, without visiting the Bank.
ensure maximum safety of operations of its customers
