Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Role of financial intermediaries
The problem with financial intermediaries
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Role of financial intermediaries
MEANING:
A banker is a dealer in capital or more properly a dealer in money. He is an intermediate party between the borrower and the lender. He borrows from one party and lends to another.
A customer is a person who maintains a regular account with the bank without taking into consideration the duration and frequency of operation of his account. To be a customer for any bank the individual should have an account with the bank.
Banker-Customer Relationship:
The relationship between banker and customer is mainly that of a debtor and creditor. However, they also share other relationships. Some of the important relationships they share are depicted
Below;
1. Relationship of Debtor and Creditor:
When a customer opens an account with a bank
…show more content…
The depositor or creditor must demand the payment at the branch of the bank, where he has opened the account. However, today, some banks allow payment at all their branches and ATM centers. The depositor must demand the payment at the right time (during the working hours) and on the date of maturity in the case of fixed deposits. Today, banks also allow pre-mature withdrawals.
The creditor must make the demand for payment in a proper manner. The demand must be in form of cheques ; withdrawal slips, or pay order. Now-a-days, banks allow e-banking, ATM, mobile-banking, etc.
2. Relationship of Pledger and Pledgee:
The relationship between customer and banker can be that of Pledger and Pledgee. This happens when customer pledges (promises) certain assets or security with the bank in order to get a loan. In this case, the customer becomes the Pledger, and the bank becomes the Pledgee. Under this agreement, the assets or security will remain with the bank until a customer repays the loan.
3. Relationship of Licensor and Licensee:
The relationship between banker and customer can be that of a Licensor and Licensee. This happens when the banker gives a sale deposit locker to the customer. So, the banker will become the Licensor, and the customer will become the
Prior to Fuller’s transfer, management at the Carson’s location was poorly run using the classical approach. While this approach can be successful, management has to find a good middle ground between caring for the company and caring about their employees. A traditional classical approach recognizes that there are five important factors to running a successful business (Miller, 19). According to text, these factors are planning, organizing, command, coordination and control (Miller, 19-20). These factors can be seen when you look at Third Bank as a whole. In the study, the CEO saw the issues in his company and put a plan together to improve. He had meetings with management, like fuller, to organize a solution. He then commanded all locations
When a client switches banks, the process can take a long time, and involves lots of
Since customer satisfaction is very important in this company, Brandon Smith, one of the Vice Presidents at of the branches, said that treating the customers as if they were the “best” is what keeps them coming back for more transactions. He then continued to elaborate that they use a communication method to get to know their customers more. For instance, Bank of America’s customers talk about their financial goals. In addition, Brandon mentioned that his employees’ set many goals to change how customers view the company in a positive way.
Loyalty of customers – we have buildup a long term relationship with our customers because of the credit accounts we
It is hard to believe that companies are still doing business this way in the year 2005. Have you (or your colleagues at NHBank) ever heard of MVC (Most Valuable Customer)? Just in case you aren't familiar with this approach, the MVC is the customer that you already have (i.e. me). Normally, these are the customers you do not want to lose and try not to lose. After all, research has revealed that it will cost you six times as much to find a new customer as it does to keep an existing one (i.
A banker’s cheque has certain distinctive features. It includes the name of the issuing bank along with its location (upper left-hand corner or upper centre), payee’s name, the amount to be tendered (both in alphabets and numbers) and a printed (facsimile) signature
Rarely is one asked to describe the ideal customer in any aspect not directly related to customer service. Therefore, I find this a refreshing and highly interesting project to stretch my imagination and experience dealing with the nature of most customers. In this paper I will describe what attributes, attitude, and mentality makes up what I consider the perfect customer.
1. Please describe your experience in the field of customer to include duties and responsibilities and the years of experience in the field.
Customers and consumers are used frequently to define the same individual but there is a difference. The difference between a customer and a consumer is determined by the path of the product after it is purchased. If the individual purchasing an item is the one who will use it, they are the consumer. If the customer is giving the product as a gift or purchasing it for someone else for any reason, the person who will use the product or benefit from its purchase is the actual consumer.
There have been Pragmatic shift from traditional marketing to a relationship Marketing approach(Gummesson 2002). Traditional marketing differ from the relationship marketing approach to how business market to consumers. The shift to relationship marketing has been highlight by series of different factors that have affected the methods used by services providers to keep loyal customers of value through methods of customer retention. Business are not the only ones that benefit from a relationship marketing practices. Customers benefit from the satisfaction they are receiving value and their needs are met or exceeded. Loyalty is embraced through incentives, trust, promotions, social, and pricing strategies designed to keep customers by practicing relationship marketing.
The invention of money was a major improvement in peoples’ lives. In the past, people usually had to travel all day to find the person who is willing to exchange their goods. In addition, the goods people want to exchange did not have the standard value of measurement. This led to unequal exchanges. Furthermore, it is not convenient to carry heavy goods from one place to another for an exchange. To solve these issues, money will be the only solution. Later, people tend to develop money from cowry shells to credit cards for the convenience and to improve their society.
A variety of groups are concerned in bank profitability for various reasons. The bank shareholders would want to know if the value of their investments is high or low. The investors also use current and past performance to predict future price of the banks’ shares traded on the stock exchanged. The management of the bank as trustee of the shareholders is evaluated and compensated on the basis of how well their decisions and planning have contributed to growth in assets and profits of their banks. Employees of bank also are concerned with profits, since their salaries and promotions are frequently tied to the profitability performance of their banks. Depositors use bank performance and profitability as indicators of security for their deposits in the banks. Finally, business community and general public are concerned about their banks’ performance to the extent that their economic prosperity is linked to the success or failure of their banks.
Never have I ever climbed a mountain peak. As a child, I imagined myself conducting expeditions in deep-frozen pathways, leading amateur explorers to the top of the world, and instructing rookies in surviving harsh blizzards. Even though slightly altered, my childhood dream has been achieved. I led a team of fellow classmates, in my Strategic Management course, to the success summit of a financial competition. Over the course of a semester, I and my teammates were supposed to create and manage a company of the IT industry, in a computer-simulated environment, along with other four rival teams. I dealt with strategy and financial matters of our virtual enterprise, while my colleagues were working on marketing and manufacturing. During the four months of the exercise, I have experienced finance from various aspects: capital budgeting, through selecting favorable investment for upcoming quarters; debt management, by assessing the necessary amount and efficiency of loans; profitability analysis and dividend policy, which had been used to compile the company’s general performance index. Working in a multinational team, which included an American, a Norwegian and a Moldovan, strengthen my negotiations skills, as well as flexibility and cooperation. But above all, this experience intensified my passion for finance. Of course, a pleasant bonus was the fact that, in the end, our company’s financial performance was six times the performance of second-best team.
Customer Relationship Management primary purpose is customer retention and the firm’s profitability. This is accomplished through the use of personal, technology; in addition, different tools process, and activities. To be successful at customer relationship management the firm must be selective with their investments. The focus of customer relationship management shifted from just new customers to retaining the customers. This is to build up their loyalty to the firm’s brand. The relationship between the two impacts both parties and can be affected by individual and several transactions. This style of management emerged from relationship marketing which has focused on the lifetime connection with the customer. This type of marketing became popular in the 90’s because firms began to realize the value of their customers as tangible assets they could control.
Customer Relationships is about building a relationship of trust and convenience. A customer wants the company they are working with to be intuitive. To know their needs before they do. They want to feel respected, they need to believe you are honest and have integrity. This relationship breeds comfort and familiarity and causes the consumer to continue to do business with your company. This relationship that is built develops a personal relationship, like a friendship and it is one that the consumer cannot get from the store down the road and it is that personal touch of sincerity, of knowing their needs, of servitude that will turn them into lifelong branded customers.