Business — Banking — Management — Marketing & Sales

Function of bank production



Category: Bank Management

Banks are required to manage the financial capital of their customers, and to manage the flow of data and updating them they requires close monitoring.

Such a role is provided by the banking production. This activity has undergone considerable changes after the onset of electronic data processing systems, as well as a consequence of ever-increasing needs of other aspects, such as networks, finance, marketing.

Management deposits

Production function of the bank controls the management of current accounts:

— Opening, editing, and closing accounts

— Special accounts for clients such as companies, real estate agencies

— Special operations, relating to, for example, property, banking restrictions

— Check regulations

Savings management

Most of the savings accounts must comply with the recommendations of state agencies.

— Rules for opening savings accounts

— Calculation of interest

— Special cases

— Rights relating to an account

— Implementation of rules

Management of securities

This function manages all types of securities that customers are kept in a bank, for example, stocks, certificates, derivatives, securities, mutual funds, bonds, insurance products, etc.

— Subscribe

— Communication with the market for buying / selling

— Safekeeping in depositary

— Disseminating information to the companies

— Mediation in the purchase / sale of a controlling or blocking share

— Payment of interest, dividends and coupons

— Transfer of financial documents to clients

This activity is quite complex, but the correct calculation of fees for services makes this business very profitable.

Managing money circulation

Financial flows and payment instruments are circulating in the cycle of data collection — they include a variety of instruments such as checks, credit cards, transfers, bills, etc., which are used by national and foreign institutions.

1. problems associated with the cycle of data collection

in each operation must exist two different chains — for cash flow and commitments. To avoid delays (they can cost big money) banks tend to automated data processing.

Desirable goals:

— Price reduction

— Removing the possibility of ambiguity

— Optimization of cycles

2. Tools

— Banks are exchanging paper liabilities: notes, checks, etc.

— Electronic link to the interbank system promotes greater mobility, exchanges, so that operations can be performed at any time.

— Turnover of credit cards has become more important, banks tend to increase the reliability of operations and improve productivity

— An international series: international banks use the SWIFT network to transport documentary credits, to make payments, cash management, information transmitted through the SWIFT system is standardized

Common means of production

This function has to deal with the management of immovable and movable property of the bank.

A. banks rent or buy buildings (branches, production centers and central offices). Fixtures, such as computers, furniture or cars, are rented, or traded.

B. banks have a department that deals with similar types of property

C. Management of the property partly lies in the choice of a better method of accounting for tax purposes

D. banks have a department that deals with the transmission of information (eg phone, mail)

E. in cooperation with the marketing department this department manages the organization of service delivery points, and monitoring ongoing research.


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