What is a banking product

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

What is a banking product? One of the definitions says that it is a certificate (or document) that was issued by a financial institution in order to serve its customers and carry out relevant operations.

In plain language, then, for example, in consumer lending, the mentioned product is a loan agreement that regulates the relationship between the parties to the transaction.

It is noteworthy that the banking product had no clear definition for a very long time. But through long debates on this topic and analysis of the peculiarities of the work of financial organizations, it was still possible to determine those elements that are its components. For example, a basic element is a technology that determines the type of a product. These include savings and current accounts of customers, deposits and loans. There is an opinion that in the near future the pledge will somewhat lose its position in terms of significance. The lender will be more interested in the financial condition of the borrower. Decreased attention to material support will cause the activation of entrepreneurs who want to engage in their own business.business, bankers say.

Very often a banking product is confused with a service. The latter should be understood as a set of customer service operations. There are the following varieties of it:

• all kinds of consultations;

• cash flow management;

• broker assistance in dealing with securities;

• investment services;• insurance.

Remember what the definition at the very beginning says? So, according to him, the banking product is of the following types:

• currency transactions;

• business loans and commercial papers;

• savings deposit;

• storage of various valuables;

• checking accounts; • government lending.

Do you feel the difference between it and the service?

Automation processes, which are unusually developed in society today, are an excellent tool that, if necessary, will quickly bring new types of banking products to the market.

In the current situation, the most requested type of "customer satisfaction" is batch service. As part of it, individuals and legal entities can use a whole list of services. And the higher the package fee, the greater the quantity.

And now let's see what are the sales channels for banking products. Firstly, it is working directly with the client who came to the branch. And here it is necessary to talk about the saleproduct that is of direct interest to him. The second way follows from the first - cross-selling or cross-selling. Its essence lies in the fact that a person receives not only what he came for, but also something “in the load”. The most striking example is a credit card "in addition" to a salary card. In addition, to date, many financial institutions have successfully mastered electronic sales. Most often they are implemented through the Internet banking system. It is also impossible not to note the way to promote their services through media channels. Although it must be admitted that in terms of efficiency they are somewhat inferior to the same electronic ones.