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Tag: Retail Banking

A Career Guide To The Field Of Finance

Posted on by Imarticus Learning
Reading Time: 2 minutes

What does having a career in finance mean? It refers to job opportunities in a variety of fields. These fields are namely, Investment Banking, Trading, Financial Advisory, Analytics, Financial Media, Financial Analysis, Portfolio Management, Corporate Finance, Asset Management, Mergers and Acquisitions and so on. One thing common among all of these fields of finance is that a career in any of them is extremely lucrative.
This is one of the main reasons as to why candidates aspire to become highly qualified professionals in the field of Finance. While some take the route of education, go on to get graduated in any related field of Finance, then go ahead and do their masters and MBA and then look for a job. There are also quite a few who choose to go the way of the industry. By taking up professional training courses, like those offered by institutes like Imarticus Learning, these individuals are able to develop a skillset, which is way more relevant to the industry and is exactly what HR Managers are on the lookout for.

Let’s go further and discuss the various credentials that the field of finance has. As is common with every field out there, Finance also happens to have its very own professional qualifications and licenses. These include, the Chartered Financial Analyst (CFA), Certified Financial Planner (CFP), Certified Public Accountant (CPA), as well as a series of licenses.
These series of licenses are for instance Series 7 & Series 63, both of which are usually issued by the Financial Industry Regulatory Authority (FINRA). Both the series of licenses, require a professional to complete a course of study and passing an exam. While these licenses work as a legal requirement, the certifications or credentials like CFA are more of resume boosters, which give great prestige to the holder.
Most of the concentration of Financial Jobs can be found in all of those cities, which are considered to be international centers of finance all over the world. These could cities like New York, London, Hong Kong, Shanghai, Dubai, and Zurich and so on. If you happen to be looking for a job, which is based in a foreign country then you must ensure that you know the basics of the native language therein.
While it may seem that your city or state does not happen to have great and stellar corporations, this does not mean you should despair. For all of those who are aware of the concept of globalization, it seems to be happening at a more rapid speed. Many large banking corporations like JP Morgan and the likes happen to have hedge funds and smaller money management firms situated in a number of locations lately.

What is the difference between Retail and Corporate Banking?

Posted on by Imarticus Learning
Reading Time: 4 minutes

Retail Banking and Corporate Banking Overview

Retail and corporate banks are among the most important contributors to India’s economic growth and development. However, they both operate differently and offer different banking services. So, the major difference between retail and corporate banking is their target customers. 

Retail banking provides financial services to individuals and small businesses. Whereas, corporate banking is more geared towards larger quantities of loans and investment products to business conglomerates and companies.

Retail banking is the public’s first impression of banking, with bank branches in major cities. In comparison, corporate banking works with businesses to issue them loans and provide credit. Along with this they also offer savings accounts and checking accounts designed for companies. They don’t serve individuals.

Major differences between Retail Banking and Corporate Banking 

  1. Clientele 
  2. Amount of money involved
  3. Services offered
  4. Amount of money produced

What is Retail Banking?

A retail banking division deals directly with retail customers. Clients can get various products and services from retail banks. That includes credit and debit cards, mortgages, and personal loans. In addition, retail banking also includes checking and savings accounts and offers investment advice. Retail banking is also termed consumer or personal banking. And, it includes smaller personal investments of clients.

Features of Retail Banking

Small size transactions

Retail banks have small-size transactions. As the amount involved in issuing a car loan, personal loan, or fixed deposit is not high.

Less amount of risk involved

Retail banks lend a small amount of money to their customers. For instance, if a retail bank lent a loan of Rs. 10 lakhs. And, the borrower couldn’t return the amount, the loss is only ten lakhs. As a result, the risk is also low.

Multiple branches

Retail banks must open more branches in places to attract clients and increase the client base. So, you can see many branches of retail banks across the cities.

High administrative and operational costs

Retail banks have a lot of branches and have to spend a large amount of money. Therefore the major expenses are on facilities, staff, and other operations. Therefore, overall expenditure on administration and operation is increased.

Offer multiple services to the customers

Retail banks provide

  • The facility of opening saving bank accounts.
  • Offering credit and debit cards.
  • Lending car loans.
  • Personal loans.
  • Various other types of loans to customers.

In addition, selling mutual funds and products like insurance are some of the services retail banks provide.

Deals with a high level of competition

Many players in the market offer retail banking services. So, competition not only increases due to the presence of many players. Furthermore, this is because of interest rate struggles. The retail banking market constantly competes to offer more services at a lower interest rate. 

What is a Corporate Banking?

It refers to the customised financial services provided to businesses. A major focus is to help firms finance themselves and raise capital. Examples of corporate banking are employer services, commercial services, cash, and risk management.

Features of corporate banking

Business Clients

Corporate banks offer services to large conglomerates and middle and small-sized organisations. 

Getting a corporate account is not easy

The firm must get a consensus from the board of directors to open a corporate account in the corporate bank. Generally, the company treasurer is responsible for opening corporate accounts for the business.

Independence and safety

The corporate account’s content can not be accessible by the personal creditor of the board of directors. The corporate accounts are supposed to be the corporate bank’s property and not the board members. So, corporate accounts give more freedom and security to the account holders.

Credit Rating 

The applicable interest rates, the share price of the company, and overall valuation depend on the functioning or conduct of the corporate accounts.

Handsome salaries of the corporate bankers

For establishing and running a corporate bank smoothly, experts are needed. In addition, a high level of expertise is required for corporate banks to develop and function. Corporate banks’ complexities and expertise are hard to handle. That’s why corporate bankers are highly paid.

Major differences and comparisons between retail and corporate banking

Comparison Base Retail Banking Corporate Banking
Offered Services

Standardised

Customised 
Customer Base

Large

Small
Transaction Values

Low to moderate

High
Operating Cost

Higher

Lower

Let us now understand the difference between retail and corporate banking in detail.

Offered Services

Retail banks provide standard services like opening savings accounts and issuing credit or debit cards. They also provide loans such as personal loans and vehicle loans, etc. Corporate banking offers services to small or mid-size companies and business conglomerates. These services offer cash, credit and risk management, etc.

The difference in customer base

The most common and evident difference between retail and corporate banks is their customer base. Retail banks have a large customer base hausarbeiten schreiben lassen. Whereas corporate banks are limited to a few business clients like mid-small companies. 

Transactions 

Retail banks involve limited transactions. Whereas corporate banks lend massive amounts of money to their business clients hausarbeit kaufen. Therefore, the transactions involved in retail and corporate banks significantly differ.

Processing or operating cost

Multiple branches, locations, and a large staff add to a retail bank’s operational and processing costs. On the other hand, corporate banks provide limited services and have few office locations studienarbeit schreiben lassen. All this results in low operating costs.

The final takeaway 

The differences between retail and corporate banking will help me choose a field. In addition, Individuals can decide the field of their interest app erstellen lassen. In addition, this information is also helpful for the existing bankers and banks. So, retail banking and corporate banking sectors are excellent career choices for banking aspirants. 

Imarticus learning offers courses in the finance and banking sector. So, you can get in touch with our team and decide the course of your interest Statistik beratung.  Our team will guide you about careers in finance and banking. In addition, our experts will make your journey easy and successful. At Imarticus Learning we are happy to suggest and show you the path to a successful banking career.

How Retail Banking is Affecting the Industry

Posted on by Imarticus Learning
Reading Time: 3 minutes

Retail banks offer financial services for businesses and individuals alike. Essentially, they provide, banking products and services to individual customers, for entrepreneurial and non-entrepreneurial purposes. Banking significantly has always been on the ‘retail’ side I.e. they raise income from large sources such as retail depositors. So while talking about retail banking, the focus is mostly on the asset side, which means lending to the retail side.
On the whole, retail banking is offering products and services that impact both sides of the balance sheet. On the Liability side, it offers, fixed, current, saving accounts, and on the asset side, it offers mortgages and loans, such as personal, housing, automobile, educational etc…,
It is circumstantial to note, that most economies in the developing countries are now seasoned enough to ask for products and services not only during the transitional phases but also during maturing phases as well. For the same reason, it is observed that retail banking is implementing all products and services to match the current needs and the future demands of the growing economies.

Typically, the retail banks, on the asset side, offer financial services to the clients. Their clients are majorly divided into ‘mass’ and ‘class’ clientele. For the mass clientele, these banks offer blanket services that mostly cover their needs in term of consumer credits, for example, home loans mortgages, credit cards. By doing this the banks generate extra liquidity that assists the economy. For the class clientele, which is defined as niche customers, these banks customise their products and services to match the high net worth. This can also be termed as private banking, adding to the liquidity pool.
The availability of cash through easy credit methods by the retail banks, allows people to spend their future earnings today, directly impacting consumption of products and development of industries, leading to developing economies.
Now on the Liability end, retail banks offer a secured place, for people to park their existing funds, safely in the form of saving/current accounts, fixed deposits, other financial products, which get them higher returns, than parking the money under the pillow would. The interest rate, which is used as an apparatus to maintain monetary liquidity in the economy is set by the RBI. And you will see a slight fluctuation in the rates from time to time.
Lastly, Retail Banks allow you to manage your transactions fluently, and conveniently through debit cards and online transactions virtually without actually exchanging cash.
Now, since we understand the contours of retail banking, let’s understand how do they work, well, it is very simple, they make money by loaning the deposited cash on higher interest rates, than what they offer on deposits.

How do they affect the industries and subsequently the economies?

They are a supply tool for finance in any economy, the regulations permit them to have a minimum percentage of deposits on hand, and hence they have the flexibility to loan out the remaining amount. Creating a flow of money lent, from one source, going into the borrower’s account. That is how they create a deposit rate. Now visualise, what a powerful tool this is for any growing economy.
The retail banking space is a welcome retreat in the middle of all turbulence caused by global financial demands, which people struggle to deal with every day. Customer deposits, gathered by retail banking become a central source of steady funds for many banks. In this endeavour it becomes important for banks to continue introducing innovative frontiers in the space of retail banking, to maintain relevance to the customers. Banks can achieve this through an essential bond that it can create, with the customers by understanding and connect with their needs and preferences.

Read More:
How Does Private Banking Differ From Retail Banking
Careers in Retail Banking and Wealth Management

Introduction to Reference Data Management

Posted on by Imarticus Learning
Reading Time: 2 minutes

What is Reference Data Management?
Reference data management is a process that drives efficiency across the market by maintaining high data quality standards.

What does reference data management provide?
It provides full terms and conditions data, including ratings and descriptive content, for each asset type.
Reference data maintains extensive market-level and issue-level industry standard numbering codes. These are associated with each equity instrument including official clearing code identifiers (SEDOL, CUSIP, ISIN, CINs, Local Exchange codes MIC).

Type of Reference Data:
Reference data includes static and dynamic.
Static Reference data – Data elements that have unalterable characteristics.

E.g.:
• Financial products specifications and expiration dates
• Information about counterparties and supply chain partners.
Dynamic reference data – Variable data such as closing and historical prices.

Why is reference data management required?

The market data for a particular instrument includes:
• An identifier of the instrument and
• Where it was traded – such as the ticker symbol and exchange code
• The latest bid and ask price and the time of the last trade
• Volume Traded
• Bid and offer sizes
• Static data about the financial instrument from a variety of sources.

Hence, they require Reference data management.

Reference data is utilized across the front, middle, and back-office systems of an investment bank. It helps banks and financial institutions reduce exposure to counterparty credit risk. It also manages capital and liquidity. All this is achieved by leveraging an Intelligent Data Platform.

What are the advantages of a reference data platform?

• Manage and deliver reliable reference data across the system and existing reference centers.
• Create a single source of the truth through onboarding the new entity identifier and cross-reference it with existing entity information and identifiers.
• Streamline hierarchy structures.
• Deliver and syndicate data to any system in any format, latency, or structure.

We at Imarticus Learning constantly update our course curriculum to enable you to build a firm foundation for sound careers in banking by contributing to resolving the challenges faced by the investment banking industry.

Reference data management is one of the top challenges faced by investment banks in 2016 and also a crucial part of our syllabus. This not only enables you to grab a coveted job but also keeps those already a part of the industry updated with the recent trends.

How Does Private Banking Differ From Retail Banking?

Posted on by Imarticus Learning
Reading Time: 2 minutes

Banking is no longer restricted to the traditional aspects, which was recognized within the earlier days. Today, a bank is no longer just a place to put your savings or to go take loans, it has become more of an all-encompassing body. With the advent of investment banking, globalization and the easy cash flow in the economy, the banks received a face-lift and started getting involved in the business spheres.

Today, there are many nationalized as well as private banks, offering a host of services to companies, the government, as well as private individuals. Banking as a sector, branches out into Investment Banking, Private Banking, New Age Banking and many more.

 

Private Banking, in simple word, refers to banking with private individuals. This field offers personalized financial services, to individuals who are also known as High Net Worth Individuals. These are affluent people with a lot of financial assets and thus are looking for conventional and non-conventional ways of investing them. The main purpose of these banks is to provide these individuals, with options that suit their needs of investing their financial assets.

These banks do not just provide investment advice, but go a step ahead and offer all of their services, exclusively to these individuals. These services include managing their portfolios, protecting and growing their assets, future financial planning; basically, they manage the entire financial situation of the individuals. One of the key benefits of private banks is the privacy and the anonymity offered, in terms of the dealings, these also provide tailored financial solutions, which adds to the lure.

Whereas on the other hand, retail banking basically deals with all the day to day activities of a bank. These banks provide all the services that any individual would be in need of like, account services, personal loans, mortgages, certifications of deposits and so on. In retail banking, the focus is more on the individual, than their financial assets. These banks are usually the local branches of larger commercial banks, which the customers use as a one-stop-shop for all of their banking needs.

As time progresses, these banks have begun to expand the purview of the services they offer, now customers are also provided with financial advice, from a board of financial advisors. Apart from this, retail banking has also widened its horizons through the concept of internet finance.

 

With the internet revolution in full swing, a lot of these banks have begun to offer services, exclusively through mobile phones applications and online. These services are very similar to those offered by any traditional bank, but cost comparatively less. While private banks offer specialized services, retail banks have a huge array of services to offer from wealth management, brokerage accounts to financial planning as well as private banking solutions.

While retail banking is a wider sphere, private banking forms a part under these services. Anyone looking to enter these fields is required to have a strong background in finance, economics, and commerce. While there are a lot of institutes, that offer specialization courses in the field of finance. Imarticus Learning is a leading education institute, offering courses in new-age banking, retail banking, wealth management and more.

 

Careers in Retail Banking and Wealth Management

Posted on by Imarticus Learning
Reading Time: < 1 minute

RETAIL BANKING
Also known as Consumer Banking, it involves provision of services by a bank to individual consumers, rather than to companies, corporations or other banks.
WEALTH MANAGEMENT
An investment-advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services
Careers:

EMPLOYMENT LANDSCAPE

  • Axis Bank
  • HDFC Bank
  • ICICI Bank
  • IndusInd Bank
  • Kotak Mahindra Bank
  • Yes Bank
  • HSBC
  • Citibank
  • Reliance Capital
  • Birla Sun Life
  • Religare
  • Franklin Templeton
  • Motilal Oswal
  • Edelweiss
  • DSP BlackRock
  • LIC Nomura
  • IDBI
  • Deutsche Asset

Imarticus Learning offers various short term and long term diploma programs on Corporate Finance. We are especially proud to announce the launch of our 250-hour Diploma in Retail Banking and Wealth Management. Please contact us to learn more.