A banking product is a certificate issued by a credit and financial institution to serve its customers, as well as carry out the necessary operations.
What is a banking product
A banking product is characterized by the presence of a basic element, which is considered to be technology. It is she who determines the type of a particular product. There are several types of banking products. These include current and savings accounts, loans and deposits of bank customers.
Also banking products include government lending, storage of valuables, checking accounts, commercial bills and loans to businesses. In addition, currency transactions can be added to this list. They consist in the purchase and sale of foreign currency by banks. In this case, the bank receives income from the exchange rate difference. Of course, conducting such operations requires specific knowledge. Commercial bills are accepted by banks for accounting. So, through the redemption of the obligations of third parties, lending to enterprises is carried out.
Savings deposits are one of the most common offerings of banks. Savings deposits allow institutions to provide sufficient working capital. Storage of valuables allows the bank's clients to store valuables in a safe deposit box.
Government loans provide an opportunity to lend to the government through the purchase of bonds. Checking accounts provide the ability to pay by signing bills of exchange.
The consumer loan for the bank is the main activity. Lending allows you to form the bank's profit, this is the most promising area of work of any credit and financial organization. Today, it is in the field of consumer lending that there is a constant development.
Sales of banking products
If we talk about the current situation, the most demanded is package services for legal entities and individuals. The offer allows you to use a whole range of services. The higher the payment a client pays for using the package, the more services he can use.
Banking products are distributed through sales channels. First, it can be working with a client in a bank branch. Secondly, it is cross-selling or cross-selling. If the first option is based on selling a specific product that the customer needs, then cross-selling is based on selling a product “on load”. An example is the issuance of a credit card when ordering a payroll.
In addition, many credit and financial institutions successfully carry out electronic sales through the Internet banking system. Sales also take place through media channels, although if we consider efficiency, sales through the Internet bring a lot of profit to the bank.
Banking products are the subject of an agreement between the bank and the client. The sale of banking products is impossible without high-quality banking services.
