Finance Banking, Financial Banking

Finance banking is the science of managing money and other assets pertaining to a specific business. Finance banking involves banking operations such as money management and investment. Other facets of financial banking include safeguarding deposits, generating funds and lending money.

Financial Banking: The Concept

Financial banking is central to modern economies. Banks offer advice and transactions on financial instruments such as private equity, bonds and mutual funds. Financial services are also offered by banks and other financial institutions, including credit unions, trust companies, mortgage loan companies, insurance companies, pension funds, brokerage firmsand asset management firms.

Technologies Used in Finance Banking

The expansion of finance banking can be attributed to the growing use of technological tools like debit, credit and ATM cards. The Internet has paved the way for e-banking. It is possible to post queries and find advice online. Finance software is also available for investorsand traders to track their goals on a weekly or monthly basis.

Basic Services Offered by Finance Banking

The basic services of finance banking industries include the issuing of funds in the form of coins, banknotes, debit-cards and ATMs. Most banks also offer some subsidiary financial services such as lending money, issuing bonds and certificates of deposit (CDs) and processing financial transactions to enhance their profits.

Basic Facilities of Finance Banking

Loan: This represents the money that is lent for a specific period. A loan is given with a condition that the borrower will repay the amount along with requisite interest in due time.

Mortgage: This is a temporary pledge of property offered in lieu of a loan. In mortgage, the debtor is obligated to repay the debt within a specific period. Mortgages are normally used by individuals and businesses establishments.

Credit card: Credit cards or ‘plastic’ are used to purchase products or services without paying any cash upfront, but the amount being repaid to the card issuer at a later date. Finance and banking organizations typically charge high rates of interest on any late payments on credit card bills.

Debit card: Debit cards are similar to credit cards except in that the purchase amount of any transaction is debited immediately from the card holder’s account.