Financial Services Module Flashcards
What are the 5 common products provided by financial services?
•Transactional products
•Lending products
•Estate planning tools
•insurance products
•investment products
If someone is sued, how must they pay?
Out of their personal assets -
Four forms of method of payment?
Debit/Credit card
Automatic payment
Direct debit
Bills payment
Forms of managing accounts?
Mobile app
ATM
telephone
Bank
What is a sunset product?
A product that is in decline due to reduced demand of usage
What method of payment is used to pay for goods and services by eftpos?
Debit and credit cards
What payment method would you use for fixed regular commitments such as rent or loan repayments?
Automatic payment -
payments only made when money is available and you can cancel them at any time.
What payment method would be used for regular payments in which the amount may change - such as power or insurances?
Direct debit -
Initiated by the party receiving the payment. You have to ask the other party to cancel this payment.
Why payment method could be used alternatively to AP’s and DD?
Bill payment -
For regular commitments such as rent and utilities or for any other payment made occasionally.
You can cancel anytime.
What is a HVCS?
High Value clearing system.
What is a SBI?
Settlement before interchange.
What is a HVCS?
High Value clearing system-
This governs large payments that cannot be reversed, such as house settlements. Payments are fast and cannot be reversed.
What is settlement before interchange?
SBI is New Zealand’s retail payment system that enables our clearing system (banks) to process payments with each other. settlement and interchange.
How do HVCS make/organise payments?
HVCS participants use a dedicated swift-based system between banks to settle these payments and interchange payments between them.
How does SBI work?
SBI - (settlement before interchange) enables participants ( usually banks) of these clearing systems to settle payments with each other.
Once this has occurred, exchange the payment information with other participants throughout the business on a bilateral basis.
