banking products and services pdf

Banking Products And Services Pdf

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Policymakers around the world call for more competition in the banking sector. One prerequisite to achieving this is customer mobility.

18 Types of Bank Services

Policymakers around the world call for more competition in the banking sector. One prerequisite to achieving this is customer mobility. Moreover, we find that the reported propensity to switch varies across banking products. For the main current and savings accounts, this propensity is most strongly related to the bank-customer relationship, while for mortgage loans it is especially linked to switching experience.

These findings have important implications for antitrust policy; they provide an argument against using a cluster-based legal standard for the analysis of competition and in favour of a disaggregated approach. Regarding the effectiveness of hypothetical policy initiatives to lower switching barriers, we find that the reported switching propensity with current accounts is higher in the case of account number portability, while more knowledge of the existing switching service has no significant effect.

Lastly, scenario analysis shows that a policy of allowing new foreign banks to enter the savings market is less promising for enhancing mobility than a policy that increases the number of domestic players. Policymakers frequently call for more competition in the banking sector to increase the efficiency of banking services, see for example the Global Financial Development Report Worldbank , the Australian government response to the Financial System Inquiry Murray et al.

Footnote 1 One way to stimulate competition is to lower entry barriers to attract new players. Consumer inertia means that only a small proportion of consumers switch banks, which makes it hard for new entrants to gain market share. Inertia is not only a barrier for new entrants, it also reduces competition among existing players in the market. Prior studies have concluded that most bank customers are immobile. Even though consumers hold different banking products with distinct characteristics, prior studies use broad and general measurements of switching as they examine switching the main bank.

There is little research on consumer bank switching behaviour e. Kiser ; Chakravarty et al. Research has mostly focused on either the relationship between firms and banks e.

Ongena and Smith ; Ioannidou and Ongena or on consumers and non-banks e. Giulietti et al. At the same time, the product market considered by regulatory agencies for analysing competition in the US also consists of the cluster of commercial banking products and services Federal Reserve Similarly, the European Commission focuses on retail banking markets as a whole in merger decisions.

Footnote 3 Although the clustering of banking products is convenient, identifying separate product markets may be better. Differences in mobility across banking products and the factors related to switching would provide an argument in favour of using a legal standard for analysing competition that is not based on clustering. As a result, we research banking products separately. Our study focuses on current accounts, savings accounts, mortgage loans and revolving credit as these products are most commonly held by consumers.

Our research questions are: i Does the propensity to switch depend on the banking product? Footnote 4 The factors we study are perceived benefits of switching, personal characteristics, switching experience, socio-psychological factors, the bank-customer relationship and knowledge related to banking products. Better knowledge of factors related to switching propensities, switching barriers, and the effectiveness of potential policies is important for policymakers who want to increase the threat of switching.

One way to increase competition is to allow new foreign banks to enter the market. Consequently it is also key for policymakers to understand how consumers respond to new foreign players. Although we research bank switching behaviour of consumers in the Netherlands, the questions apply broadly to other countries as well. In all countries there should be a threat of consumers leaving their bank to foster competition. Consequently insight in factors related to switching and ways to strengthen the threat of switching is of general interest.

Besides, switching rates are comparable across the Netherlands, other European countries and the US. Footnote 5. We find that the propensity to switch depends on the banking product.

We also find that the main factors explaining the propensity to switch best depend on the banking product. Differences in the propensity to switch the main current account are best explained by differences in the strength of the bank-customer relationship and socio-psychological factors. The bank-customer relationship is also the most important factor for the propensity to switch main savings accounts.

In contrast, switching experiences play the most important role in explaining variation in the propensity to switch mortgage loans. Our findings are meaningful for antitrust policy.

Instead of using a legal standard for analysing competition that is based on clustering, our findings provide an argument in favour of using a product market definition that is highly disaggregated. The general perception that switching is a hassle, that there is nothing to gain, and the absence of account number portability are also reasons why a substantial proportion of bank customers do not switch.

Regarding the effectiveness of potential policies to increase the threat of switching, we find that the reported propensity to switch main current accounts can be increased by introducing account number portability. Improving knowledge of the switching service has no significant effect. Based on these scenarios we find that it is especially difficult for new foreign banks to attract savings in the Netherlands. Therefore, a policy aiming at attracting new domestic players seems to be more effective in enhancing mobility than a policy that increases the number of foreign players.

The remainder of the paper is organized as follows: Section 2 provides an overview of the literature. Section 3 describes the survey, switching propensities and barriers that withhold people from switching. Section 4 presents the methodology and shows our estimation results.

Section 5 examines the effectiveness of hypothetical policies to increase the threat of switching and Section 6 presents our conclusions. The literature on relationship banking explains that building a relationship with the bank can be beneficial for customers. During the relationship, the bank privately observes information about the customer which can foster flexibility in loan contracts Boot and Thakor ; Von Thadden and favorable contract terms for the customers e.

However, at the same time there are also costs associated with relationship banking. Banks can extract rents as the inside bank has an informational advantage over competing banks Ioannidou and Ongena Consequently, the customer is locked-in. This effect will be more pronounced when consumers face switching costs. Switching costs may withhold customers from switching which blocks efficient buyer-selling matching Farrell and Klemperer Few studies empirically examine consumer bank switching behaviour and although consumers hold different banking products with distinct characteristics, these studies focus on the main bank.

Chakravarty et al. Responsiveness, empathy, reliability and relationship duration are significantly negatively related to the propensity to switch, while having experienced problems with the bank positively impacts the propensity to switch. A recent paper from Brunetti et al. The results show that having a relationship with only one bank and having more services with the main bank reduce the propensity to switch.

Using Japanese data, Inakura and Shimizutani investigate the relationship between deposit insurance and bank switching. Respondents who had no knowledge of a change in the deposit insurance cap were less likely to actually switch and also more likely to not consider switching.

Research on switching in other markets also reveals potentially relevant factors. Moreover, they find that perceptions about the behaviour of others, social descriptive norms, affect switching intentions. Gamble et al. They find that loyalty has a negative effect on the attitude towards switching. To summarize, the literature on switching emphasises the role of personal characteristics, the bank-customer relationship, knowledge and socio-psychological variables in explaining switching behaviour.

This is why we investigate the role of these factors in explaining differences in switching propensities. We expect to find differences in the propensity to switch across banking products. We predict the propensity to switch to be highest for savings accounts as new accounts are opened quickly, often without costs, and savings are easily transferred to the new account. Consumers who already have more than one savings account, may just transfer their savings to an existing account.

We anticipate that the propensity to switch the main current account is lower as it is less easy to switch. Current accounts are often linked to other banking products and if customers switch banks they need to inform others about the new account number.

Because of high evaluation and monetary costs we expect the propensity to switch mortgage loans to be lower. Besides, consumers are not always able to obtain a loan at another bank supply effect.

As a result we also expect a lower propensity to switch for revolving credit. Our research questions not only contribute to the academic literature, they may also yield important implications for policymaking. Differences in switching propensities and the main related factors would provide an argument in favour of using a legal standard for the analysis of competition that is not based on clustering.

Amel et al. The use of the cluster of banking services has generated less commentary than the use of local geographic banking markets. Both regulators and potential bank acquirers find the use of clusters convenient.

The European Commission also reports that it focuses on retail banking markets as a whole in merger decisions. Without the clustering, antitrust analyses would become more time-consuming and costly. Our study contributes to the discussion on whether products should be considered as being in separate markets. We conducted a survey among the CentERpanel, a representative sample of the Dutch-speaking population in the Netherlands, in June Footnote 7.

The survey was sent out to members of the CentERpanel and completed by respondents, which represents an Footnote 8 , Footnote 9 For some questions the response rate is higher up to This survey is filled in by the same respondents, and exists for more than two decades. Footnote The banking products we study are the main current account, savings account, mortgage loan and revolving credit. The current account acts a gateway for other products.

As a result the majority of consumers have their current account and deposits at the same bank Gfk As in many other European countries, bank customers pay a fee for having a current account, ranging between EUR However, more than half of consumers are not aware of the costs involved Gfk Interest rates on savings accounts are generally higher in the Netherlands than in surrounding countries, where small Dutch banks offer 50 basis points higher interest rates than large Dutch banks ACM, It is common to have a high loan-to-value ratio due to incentives as the tax relief and the national mortgage guarantee.

Pricing of Banking Products and Services : A Case Study of Commercial Banks in Zimbabwe

Skip to search form Skip to main content You are currently offline. Some features of the site may not work correctly. This paper reports on the findings of a study which was conducted to establish the factors that influence prices of bank products and services and investigate the pricing strategies used by commercial banks in Zimbabwe. The research was also intended to establish the challenges that are being faced by banks in Zimbabwe. The research used a sample of 10 commercial banks which were randomly selected in Harare. Save to Library. Create Alert.

In the modern world, banks offer a variety of services to attract customers, However, some. After keeping certain cash reserves, banks provide short-term, medium-term and long-term loans to needy borrowers. Sometimes, the bank provides overdraft facilities to its customers through which they are allowed to withdraw more than their deposits. Through this method, a holder of a bill of exchange can get it discounted by the bank, in a bill of exchange, the debtor accepts the bill drawn upon him by the creditor i. After making some marginal deductions in the form of commission , the bank pays the value of the bill to the holder.

PDF | Financial inclusion provides recourse for consumers who do not have access to affordable basic financial products and services. Low-income and | Find.

Banking Product Terms

 Рего… Но… Она пожала плечами и произнесла по-испански: - Девушке возле парка. Беккер почувствовал, что у него подкашиваются ноги. Этого не может. Росио игриво улыбнулась и кивнула на немца.

Как ты легко можешь себе представить, я был шокирован, впервые наткнувшись на его письмо Северной Дакоте о не поддающемся взлому коде, именуемом Цифровая крепость. Я полагал, что это невозможно. Но всякий раз, когда я перехватывал очередное сообщение, Танкадо был все более и более убедительным. Когда я прочитал, что он использовал линейную мутацию для создания переломного ключа, я понял, что он далеко ушел от нас. Он использовал подход, который никому из нас не приходил в голову.

Вы позволите поговорить с вами об. Беккер заколебался. - Видите ли, я, честно говоря, очень спешу.

Banking Product Terms

 У кого же. В глазах Клушара вспыхнуло возмущение. - У немца. Его взял немец. Дэвид почувствовал, как пол уходит у него из-под ног.

 - Я сегодня улетаю. Офицер был шокирован. - Вы же только что прибыли. - Да, но человек, оплативший авиабилет, ждет. Я должен доставить эти вещи.

Request PDF | Social Banking: Products and Services | This paper presents products and services that are connected to social, environmental.

About the author(s)

 Боже, вы, кажется, сумели прочесть. Он посмотрел еще внимательнее. Да, он сумел прочитать эти слова, и их смысл был предельно ясен. Прочитав их, Беккер прокрутил в памяти все события последних двенадцати часов. Комната в отеле Альфонсо XIII. Тучный немец, помахавший у него под носом рукой и сказавший на ломаном английском: Проваливай и умри. - С вами все в порядке? - спросила девушка, заметив, что он переменился в лице.

 Не верю, - возразила Сьюзан.  - Танкадо был известен стремлением к совершенству. Вы сами это знаете. Он никогда не оставил бы жучков в своей программе. - Их слишком много! - воскликнула Соши, выхватив распечатку из рук Джаббы и сунув ее под нос Сьюзан.

Единственным звуком, достигавшим его ушей, был едва уловимый гул, шедший снизу. Сьюзан хотелось потянуть шефа назад, в безопасность его кабинета. В кромешной тьме вокруг ей виделись чьи-то лица. На полпути к ТРАНСТЕКСТУ тишина шифровалки нарушилась. Где-то в темноте, казалось, прямо над ними, послышались пронзительные гудки.

Banking Product Terms

С какой стати университетский профессор… Это не университетские дела. Я позвоню и все объясню. Мне в самом деле пора идти, они связи, обещаю.

18 Types of Bank Services

Если даже он каким-то образом откроет лифт и спустится на нем вместе со Сьюзан, она попытается вырваться, как только они окажутся на улице. Хейл хорошо знал, что этот лифт делает только одну остановку - на Подземном шоссе, недоступном для простых смертных лабиринте туннелей, по которым скрытно перемешается высокое начальство агентства.

Он и так скоро уйдет. Код, не поддающийся взлому. Сьюзан вздохнула, мысли ее вернулись к Цифровой крепости. Она не могла поверить, что такой алгоритм может быть создан, но ведь доказательство налицо - у нее перед глазами. ТРАНСТЕКСТ не может с ним справиться.

Сверху хлестала вода, прямо как во время полночного шторма. Стратмор откинул голову назад, словно давая каплям возможность смыть с него вину. Я из тех, кто добивается своей цели.

 - Мисс Флетчер, вы проделали уже немалую часть пути. Постарайтесь пройти по нему до конца. Сьюзан вздохнула: - Программа принимает ключ только в цифровой форме.

Rewriting the rules in retail banking

В другой стороне комнаты зазвонил телефон. Это был Джабба. ГЛАВА 107 Сьюзан понятия не имела, сколько прошло времени.

Стратмор мысленно взвешивал это предложение. Оно было простым и ясным. Сьюзан остается в живых, Цифровая крепость обретает черный ход. Если не преследовать Хейла, черный ход останется секретом.


Turner M.

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