Unit 3 - Bank Customers Flashcards
What is a firm that holds and administers property or assets for the benefit of a third party?
Trustee
What is the financial product that would be the most suitable for a company which needs to boost its liquidity position?
Overdraft
Optichannel banking is a type of distribution channel which is a:
tailored approach which determines the best number of channels for each customer
What is not correct about basic bank accounts?
Most customers begin with a basic account before moving to a current account.
What is the training tool to help a banks frontline staff to manage initial conversations with vulnerable customers?
TEXAS
What are types of customers?
Personal customers, Sole traders, Partnerships, Ltd Companies, Clubs, associations and societies, Trustees
What is core banking services?
Accept deposits from savers, grant loans to borrowers, act as an agent for payments, providing other financial products & services including insurances & financial advice
What are green products & services?
Green mortgages-energy efficient homes
Green loans- e.g. purchase of low carbon emission car
Green bonds- funds used to fund environmentally friendly projects
What does the Consumer Credit Act 2006 cover?
-Information to customers before agreement
-Additional protection for credit card purchases between £100 & £30,000
- Procedures for default, termination
- Method of calculating APR
What is a Credit Score?
It’s a 3 digit number used by lenders to assess how likely a borrower is to repay the debt- higher the score, the less risky a borrower is
What is FICO score?
Standard measure used: based on 5 categories:
1. Payment history
2. Amounts owed
3. Length of credit history
4. New credit
5. Credit mix
What is a bank current account?
Is normally used regularly, and it is the main account that customers use to manage their money.
What are deposit services & products?
Available to people who need to manage their day to day incomes & expenditures & who want to save their surplus funds.
- Main products:
1. Current accounts
2. Savings Accounts
3. Investment accounts
Case study- March 2023 what bank offers 4 current account products?
Lloyds Bank- 1 is basic & other 3 are “high class accounts”: designed for people with income above a certain threshold & require a certain amount of £ to be paid in each month
1. Classic
2. Club Lloyds
3. Silver account
4. Platinum
What is the maximum amount that a customer can invest in an ISA each year is (2021/22 tax year)
£20,000
An equity release loan would be most suitable for a customer who wants to:
Raise money by freeing up some of the capital that is locked into their property