All posts in Banking

Personal Banking Can Benefit You In Various Ways!

By blogger on

Personal banking or personal touch banking is often called retail banking because of the retail services offered to consumers. It differs from commercial banking in a number of ways. There are various banks offering personal touch banking services in Florida. The banking services and financial products available to individuals may differ from those offered to institutions. Commercial banking and personal touch banking Jacksonville, Florida often differ in the total amount deposited by individual customers. Personal banking deposits are usually much smaller than those from commercial bank customers.

Customers

Personal bank customers are individuals with deposits of less than $100,000. Commercial banking customers vary from small businesses to very large businesses and corporations. Sometimes, a commercial customer may be another bank.

Loans
Loans made by a personal bank may include auto loans, personal loans and mortgages. Personal bank loans are much smaller than the loans offered by commercial bankers. Commercial banks offer lines of credit and larger loans that allow a company to stay in business.
Account types
Both personal banking and commercial banking offer checking accounts. The commercial accounts include fixed deposit, an interest-bearing account similar to a retail banking certificate of deposit (CD) and a current deposit, an account that generally pays no interest on money in the account.
Profitability
Commercial banking can often be more beneficial for large financial institutions as compared to personal banking. However, there is also more risk in commercial banking because of the potential for larger losses. The capability for losses from personal banking are much smaller, thus they are lower risk.
Acceptability of risk
Commercial clients with very large deposits and some private banking customers are more often willing to accept higher risks with bank investments. This acceptability of risk can sometimes lead to high gains, but can also lead to large losses.
With personal touch banking Jacksonville, you can get all the banking services you need in a checking account with a no minimum balance requirement and unlimited check writing. The Jacksonville bank personal checking is a no-cost, value-added solution for you.
Personal checking services can benefit you in a number of ways:
1.Unlimited check writing
2.Free online and phone banking
3.A free cash and check card
4.Free notary service
5.Free imaged monthly bank statements and checks

So, if you are interested in personal or personal touch banking Florida, please visit jaxbank.com

Infinite Banking – Scam Or Serious Investment Tool

By blogger on

As a financial concept growing in popularity and demand, the Infinite Banking System is beginning to receive a backlash of negative criticism. There are those that say infinite banking is a scam. But those who do so misunderstand the concept of what is being sold.

The Infinite Banking Scam
Let’s start with what this system is not. It’s not a product that you can buy on the Internet. It’s not a get rich scheme. And it’s not for everyone. Those who claim there is an infinite banking scam misunderstand the premise of what perpetual banking is all about. The truth is, the basis for this system is not even a new product. It is an established, proven product that is being used in a new and innovative way.

The Infinite Banking System is a philosophy of personal banking founded on a properly structured, dividend-paying whole life insurance policy. As a financial tool, whole life policies are a proven product. Historically, insurance companies have been one of the safest places for your money. Life insurance companies invest in very safe financial instruments such as bonds, which means lower investment risks for policyholders.

So Why Isn’t Everyone Doing It?
At the core of the Infinite Banking Concept is the idea that you become your own banker. Doing this requires commitment to the idea, and discipline in carrying out the practices of Infinite Banking.

The Infinite Banking System means you are the Saver, the Borrower and the Banker of your own bank. You save money with your bank, you can borrow money from your bank (on terms that you set) and you pay the bank (yourself) both the money borrowed and interest on that money – meaning you are making money by financing yourself. Your “bank” is based and financed by your dividend-paying whole life insurance policy.

When used as a banking application a whole life insurance policy is structured differently than other insurance policies. The policy provides a death benefit to your heirs, but places a greater emphasis on your ability to access the cash value liquidity within your account to finance your life. The amount of the Death Benefit is reduced in order to increase the amount of your policy’s cash value.

Obviously, you could set up this same personal banking system with either a checking account or a mutual fund policy. But the financial gains are limited by the tax consequences of each. A whole life policy offers a bank-like platform but provides some tremendous additional benefits. By using the whole life platform, you benefit from the tax deferred growth of your money, tax-free distributions through your policy loans, and an income-tax free death benefit to your heirs.

The Cost of Infinite Banking
The basis of the system is a whole life insurance policy, and there are initial costs and administrative fees associated with that. Critics of the concept point to these fees as proof of the Infinite Banking Scam.

The truth is, any financial policy or tool will have administrative costs associated with it. With Infinite Banking, this cost is most visible in the first years of the policy when your access to cash values is less than the premiums you deposit. But like all legitimate financial tools, this system is concerned about long-term success and the improvement of people’s lives through financial independence. If policyholders are dedicated and diligent about their commitment to this system of banking, their eventual profits will more than compensate for the upfront cost of the insurance.

Understanding the Financial Industry
We can all agree that financing is a huge industry. It’s also an industry that works to the benefit of the lending institutions, and not to the consumer. Let’s start by pointing out the misconceptions surrounding interest. Individuals are sold on the concept of interest rates. If we get a 5% interest rate as opposed to a 6.5% interest rate, we think we’re getting a good deal.

Financial institutions, on the other hand, are concerned with interest volume. If you’ve financed the purchase of a home, for instance, the Truth in Lending Statement will spell out exactly how much interest you are paying. You may think you are paying 6.5% interest on your loan, but your TIL will show that over a 30-year mortgage you will actually pay double the price of your home in interest. That’s more like 50% interest, not 6.5%. So why do we do it? Because we don’t know a better way.

The Infinite Banking System offers people a better way – a way of breaking this cycle of making money for the banks. Of course, when policyholders are just getting started with the system, they won’t be able to immediately finance a new home. But they can start with smaller, personal loans. And if they are disciplined about paying themselves back, they will soon find they can finance a car purchase, and perhaps eventually a home. In fact, when used correctly, the more loans an Infinite Banking policy finances, the more money it makes for its holder.

The Successful Infinite Banker
The success of this system is predicated on the discipline of the policyholder as his or her personal banker. By borrowing from yourself and paying yourself back you will recapture more of the principal and interest that you normally were sending away. The structure of an insurance policy will reduce the number of payments required to payoff the loan, and by reducing the number of payments, there is an instant gain. More of the payment is applied to principal then interest.

Additionally, with whole-life insurance policies there are no transaction fees and funds are guaranteed to grow on a tax-deferred basis. Distributions from your cash values done as policy loans are tax-free. Withdrawals from the policy are tax-free up to the amount of your basis, or the amount of money you have contributed to the policy.

The Infinite Banking Scam is a fallacy. This is a proven financial tool that can improve the financial lives of those with the discipline and understanding to make it work.

SBI to bring in green-channel banking

By blogger on

The State Bank of India is set to introduce green-channel banking to promote paperless work and reduce footfall of customers in the already over-burdened ATMs and branches. p>

SBI general manager for network-I D Mozumdar said here on Saturday that apart from regular counters, a new counter was being opened in which customers could swipe their ATM cards and enter the pin code to receive cash from the person manning the counter. “In this way, there will be no requirement for paperwork and the process of money withdrawal will be fast,” he said.

Under the financial inclusion scheme of the Reserve Bank of India, SBI has been asked to take up responsibilities in 43 of the 156 “under-banked” blocks of the state, besides extending banking facilities to 408 villages having a population of over 2,000 people. Mozumdar said SBI would connect 200 villages by March this year through different banking techniques. “We do not require brick and mortar branches these days to extend banking facilities because technology has made the work easier and SBI is fortunate to have all the modern banking technology,” he said.

All 200 villages where SBI is planning to launch services by March will be on technology platform that includes micro-ATM or mobile-based banking in which the customers having a mobile phone can access his or her account through the cell phone and bio-metric smart cards by which a user is identified on a hand-held machine through finger prints. Business correspondents appointed by bank will also disburse cash along with printed receipts and through kiosk-mode in which the bank provides a laptop with face-reading and voice-recognition software to enable transactions.

A Study on Marketing Strategy of Banking Industry in India-Allahabad Bank

By blogger on

The Oldest Joint Stock Bank of the Country, Allahabad Bank was founded in April 24th of the year 1865 at the confluence city of Allahabad by a group of Europeans. At that occasion Organized Industry, Trade and Banking started taking shape in India. Thus, the History of the Bank spread over three Centuries – namely Nineteenth, Twentieth and Twenty-First. As a leading public sector commercial banks in India, Allahabad Bank offering banking products and services to corporate and commercial customers and retail customers. The Bank particularly focuses on the retail banking while serving all sectors of the Indian economy. Bank’s operations for corporate and commercial customers cater to large corporate customers as well as to small and middle market businesses and Government entities. Corporate and commercial products include Term Loans, Bill Discounting, Export Credit and other business credit and financing products. Also the bank offers a wide range of retail products including Home Loans, Personal Loans and Automobile Loans as well as Debit Cards. In addition, specialised products and services to the agricultural sector also one of entity of the bank. All the above products and services of the bank offered through extensive branch network, extension counters, ATMs, phone banking and the Internet. This article will be helpful in writing Project Report on Marketing.In Twentieth Century, The Bank became a part of P & O Banking Corporation’s group with a bid price of Rs.436 per share in 1920. The Head Office of the Bank was shifted to Calcutta on business considerations during the year of 1923. The Bank crossed its century year in 1965. In July 19th of the year 1969, Allahabad Bank was nationalized (with 151Branches – Rs.119 crores of Deposits and Rs.82 crores of Advances) along with 13 other banks. United Industrial Bank Ltd was merged with the bank in October of the year1989. The Bank made a foray into merchant banking activity in 1984 and subsequently instituted AllBank Finance Ltd as a wholly owned subsidiary for Merchant Banking in the year of 1991. The Official Language Implementation Committee of Calcutta awarded the Rajbhasha Shield to the Bank as Second Prize for its best performance for the year 1991. During the year 1995, The Bank had entered into an MOU with the Small Industries Development Bank of India (SIDBI) for financing small-scale industrial units. In 1996, The Bank had set up Information Technology Centre to provide in-depth computer training to Officers at Calcutta and Lucknow. Consequent to the SEBI Rules and Regulation the company surrendered its merchant banking registration in 1998 and got it registered as a Non Banking Financial Company (NBFC) with Reserve Bank of India (RBI). In the same year of 1998, the bank had received permission from the RBI for gold trading. Allahabad Bank has entered into an arrangement, informally though, with IDBI and ICICI in regard to funding of infrastructure projects. During the year 1999, Allahabad Bank has launched two new schemes to increase the pace of credit off take and in the same period TATA Consultancy Services (TCS) has entered into a contract with Bank for implementing the Integrated Standard Banking System (ISBS), a branch mechanisation package at 60 branches. The Bank bagged three major core sector clients, namely the National Thermal Power Corporation (NTPC), Power Grid Corporation and Indian Railway Finance Corporation Ltd (IRFC). This report shows that Allahabad Bank has performed well which is reflected in its Ratio Analysis Reports In Twenty-First Century, Allahabad Bank has launched its new personal loan scheme for pensioners in the year of 2001. As at October of the year 2002, the bank came out with Initial Public Offer (IPO) of 10 crores share of face value Rs.10 each, reducing Government shareholding to 71.16% and in the same year 2002, Allahabad has tied up with National Institute of Banking Management, Crisil and Earnst & Young for development of HRM, risk Management and general business strategy. The Bank has seized the commercial assets of the Guarantors of Ramolene Fabrics (P) Ltd in 2003 at Mumbai and signed a Memorandum of Understanding (MoU) with Corporation Bank for mutual sharing of their ATM Network. The Bank has entered into an MOU in the year of 2004 with the Export Credit Guarantee Corporation of India (ECGC) for distribution of their products to the exporters. UTI Mutual Fund and Allahabad Bank on April 5, 2004 announced a strategic tie-up for distribution of UTI MF schemes. During April of the year 2005, the bank made Follow on Public Offer (FPO) of 10 crores equity shares of face value Rs.10 each with a premium of Rs.72, reducing Government shareholding to 55.23%. The Bank has signed MoU with Mahindra Gujarat Tractor Ltd in the identical year 2005 for financing Hindustan brand tractor under special finance scheme. Allahabad Bank transcended beyond the National Boundary, Allahabad bank had opened a representative office at Shenzen, China in June 2006. In October of the same year 2006, the bank rolled out its first branch under Core Banking Services (CBS). During February of the year 2007, The Bank opened its first overseas branch at Hong Kong. During the calendar year of 2007, 100 more branches opened throughout the country, the total number of branches were stirred from 2042 to 2142 of which rural are 983 (46%), semi-urban 402 (19%), urban 450 (21%) and metropolitan 307 (14%). There is no doubt that reading Banking Industry Reports is essential for knowing the history of a bank. Allahabad Bank has opened its 2154th branch in at Pudukkottai, Tamil Nadu during March of the year 2008. The Bank has 211 ATM’s and Card members can now have access at over 16500 ATM’s all across the country under National Financial Switch. One of the premier nationalised banks of the country, Allahabad Bank has commenced the process of implementing the Agricultural Debt Waiver and Debt Relief Scheme-2008 in June of the year 2008. The Bank has improved its performance and established its visibility and strong presence in the market. The Bank is steadily moving at a faster pace to consolidate its position in the coming days introducing extensive computerization to ensure the state-of-the-art service comfort for its customers. The Bank has already in hand 116 authorizations for opening of new branches. Bank’s plan is to expand in areas where the Bank’s presence is not very much visible now and where business potentiality is good.

Philippine Banking Industry Outlook Positive Despite Recession

By blogger on

The Philippine banking industry seems to be unaffected by the global financial crisis. And despite the liquidity crunch in various developed and emerging economies, the Philippine banking industry has been able to sustain the growth level.

According to a research analyst at RNCOS, -The banks in Philippines have benefitted from a series of reforms undertaken in past and intervention by the regulator to increase the capital base and to have better risk management strategies in place. The multipoint policy adopted by the industry during the last quarter of 2008 has resulted in minimum risk exposure to the banks in Philippines. Restricting dollar sales only for outward investment, enabling active lending between banks and low level of investments in foreign assets has resulted in positive outlook of the industry in current economic turbulence. Banks in Philippines have limited their investment in local blue chip companies because of the high yield from the Philippine Stock Exchange.-

Banks in Philippines are opting for high degree of penetration, mergers and acquisitions, and high credit growth rate at a time when banks in other developed and emerging economies are writing off assets base and slowing down credit disbursal rate. However, according to -Philippines Banking Sector Analysis-, a research report from RNCOS, the sector will manage to book a CAGR growth of 10% in its asset base through 2010.

-Philippines Banking Sector Analysis- contains comprehensive research and rational analysis on various segments, like assets size, income level and number of cardholders, in the Philippines banking industry. It also analyzes the current performance and growth opportunities in the sector, and helps clients to understand various products available in the market and their future scope. It also discusses the role of technology in the Filipino banking industry.

The report gives future outlook of different aspects of the banking industry such as financial cards, mobile banking, bancassurance, industry assets, mutual fund assets under management, number of credit cards, IT spending by banking industry, microfinance and life insurance product sales etc. The future projections are made after analyzing the current market scenario, past trends and regulations laid by the central bank.

For FREE SAMPLE of this report visit: http://www.rncos.com/Report/IM113.htm

Check DISCOUNTED REPORTS on: http://www.rncos.com

About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. We are a team of industry experts who analyze data collected from credible sources. We provide industry insights and analysis that helps corporations to take timely and accurate business decision in today’s globally competitive environment.