module one Flashcards
retail banking
providing financial services to individuals
Commercial banks
mainly take deposits and provide loans
Savings banks
offer similar to retail. mutually owned
Co-operative banks
similar to savings tend to merge to form larger banks
Building societies
deposit taking and mortgage lending
Credit unions
non-profit co-op organisations. Owned by members who pool savings and lend to each other
Finance houses
provide loans to individuals and companies from investors.
Established banks
full banking service branches and digital channels
Specialist banks
particular segment of the market
Digital only banks
full banking licence. Compete on equal terms
Neo banks
don’t have their own licence so partner with a bank that does
Non-banks
players in market with no connections but meet conditions to provide financial services
Non-banks
players in market with no connections but meet conditions to provide financial services
Private banking
financial services to wealthy customers
Corporate banking
products and services banks provide to large companies
Wholesale banking
borrowing and lending large sums of money with large clients
Investment banking
advice to corporate customers buying and selling shares on their behalf
Islamic banking
doesn’t allow interest
International banking
offer services to other countries
API’s (application programme interface)
allows software to interact with one another.
Advanced analytics
predict customer behaviour and shape business decisions
AL (artificial intelligence)
computer programmes stimulating human intelligence
Conversational interface
voice assistant allowing us to talk, chatbots allowing us to type
Cloud computing
delivery of services over internet
Mobility and wearables
customers wearing trackable technology
RPA (robotic process automation)
customer software robots to perform tasks
IoT (internet of things)
different devices connected to produce data
Blockchain
digital record of transactions. an pay each other without a clearing point
Quantum computing
manipulate combinations of data at the same time
Augmented reality and virtual reality
augmented adds to reality whilst virtual replaces reality
Size transformation
when banks collect small-size deposits from savers and repackage into larger loans
Maturity transformation
when banks convert deposits withdrawn on demand to longer-term loans
Risk transformation
when banks minimise risk of individual loans by diversifying their investments, monitoring borrowers and holding funds
Profitability
the more they lend the bigger potential to make profits. balance between making profits and having enough cash
Liquidity
keep enough cash to pay back depositors when they want to withdraw it whilst still being able to invest and make profit.
A mission statement
sets out what its trying to do
A vision statement
goals for future
Statements of corporate values
communicate core principles that guide organisations strategy
Objectives
statements of specific outcomes to be achieved
Principle 1
alignment - to contribute to individuals needs and society’s goals
Principle 2
impact and target setting - increase positive whist decreasing negative impacts on people and environment
Principle 3
clients and customers - work with them to encourage sustainable practices and enable economic activities for current and future generations
Principle 4
stakeholders - consult, engage and partner with stakeholders to achieve societies goals
Principle 5
governance and culture - implement commitment to these principles through a culture of responsible banking
Principle 6
transparency and accountability - review these principles for our positive and negative impacts and our contribution to society’s goals
