module one

Question 1

retail banking

Answer 1

providing financial services to individuals

Question 2

Commercial banks

Answer 2

mainly take deposits and provide loans

Question 3

Savings banks

Answer 3

offer similar to retail. mutually owned

Question 4

Co-operative banks

Answer 4

similar to savings tend to merge to form larger banks

Question 5

Building societies

Answer 5

deposit taking and mortgage lending

Question 6

Credit unions

Answer 6

non-profit co-op organisations. Owned by members who pool savings and lend to each other

Question 7

Finance houses

Answer 7

provide loans to individuals and companies from investors.

Question 8

Established banks

Answer 8

full banking service branches and digital channels

Question 9

Specialist banks

Answer 9

particular segment of the market

Question 10

Digital only banks

Answer 10

full banking licence. Compete on equal terms

Question 11

Neo banks

Answer 11

don’t have their own licence so partner with a bank that does

Question 12

Non-banks

Answer 12

players in market with no connections but meet conditions to provide financial services

Question 13

Non-banks

Answer 13

players in market with no connections but meet conditions to provide financial services

Question 14

Private banking

Answer 14

financial services to wealthy customers

Question 15

Corporate banking

Answer 15

products and services banks provide to large companies

Question 16

Wholesale banking

Answer 16

borrowing and lending large sums of money with large clients

Question 17

Investment banking

Answer 17

advice to corporate customers buying and selling shares on their behalf

Question 18

Islamic banking

Answer 18

doesn’t allow interest

Question 19

International banking

Answer 19

offer services to other countries

Question 20

API’s (application programme interface)

Answer 20

allows software to interact with one another.

Question 21

Advanced analytics

Answer 21

predict customer behaviour and shape business decisions

Question 22

AL (artificial intelligence)

Answer 22

computer programmes stimulating human intelligence

Question 23

Conversational interface

Answer 23

voice assistant allowing us to talk, chatbots allowing us to type

Question 24

Cloud computing

Answer 24

delivery of services over internet

Question 25

Mobility and wearables

Answer 25

customers wearing trackable technology

Question 26

RPA (robotic process automation)

Answer 26

customer software robots to perform tasks

Question 27

IoT (internet of things)

Answer 27

different devices connected to produce data

Question 28

Blockchain

Answer 28

digital record of transactions. an pay each other without a clearing point

Question 29

Quantum computing

Answer 29

manipulate combinations of data at the same time

Question 30

Augmented reality and virtual reality

Answer 30

augmented adds to reality whilst virtual replaces reality

Question 31

Size transformation

Answer 31

when banks collect small-size deposits from savers and repackage into larger loans

Question 32

Maturity transformation

Answer 32

when banks convert deposits withdrawn on demand to longer-term loans

Question 33

Risk transformation

Answer 33

when banks minimise risk of individual loans by diversifying their investments, monitoring borrowers and holding funds

Question 34

Profitability

Answer 34

the more they lend the bigger potential to make profits. balance between making profits and having enough cash

Question 35

Liquidity

Answer 35

keep enough cash to pay back depositors when they want to withdraw it whilst still being able to invest and make profit.

Question 36

A mission statement

Answer 36

sets out what its trying to do

Question 37

A vision statement

Answer 37

goals for future

Question 38

Statements of corporate values

Answer 38

communicate core principles that guide organisations strategy

Question 39

Objectives

Answer 39

statements of specific outcomes to be achieved

Question 40

Principle 1

Answer 40

alignment - to contribute to individuals needs and society’s goals

Question 41

Principle 2

Answer 41

impact and target setting - increase positive whist decreasing negative impacts on people and environment

Question 42

Principle 3

Answer 42

clients and customers - work with them to encourage sustainable practices and enable economic activities for current and future generations

Question 43

Principle 4

Answer 43

stakeholders - consult, engage and partner with stakeholders to achieve societies goals

Question 44

Principle 5

Answer 44

governance and culture - implement commitment to these principles through a culture of responsible banking

Question 45

Principle 6

Answer 45

transparency and accountability - review these principles for our positive and negative impacts and our contribution to society’s goals