Today, the vast majority, if not all, of us use internet banking services. It’s easy to use, convenient, safe, and convenient. Despite this, there are still others who are sceptical of banks. People continue to avoid banks for a variety of reasons, including mistrust, engagement in shady behaviour, and lack of knowledge about these organisations. In the aftermath of the global pandemic, people have become increasingly reliant on banking institutions to carry out many of their activities. So, today I’ll be talking about consumer banking, but before that head over to Hong Leong Bank to open your own internet account in Malaysia.
What is Consumer Banking?
So, what does consumer banking entail? Consumer banking, often known as retail banking or personal banking, is a branch of banking that caters to individuals rather than businesses or corporations. Individual clients can utilise consumer banking to manage their money, get credit, and make secure deposits. consumer banks provide the majority of the services that we have come to expect.
Consumer banks serve ordinary individuals like us who save their money in banks, whereas commercial banks serve corporate consumers and enterprises. Despite the fact that there are separate banks for consumer and commercial banking, most banking organisations now have both consumer and business divisions.
What are the services provided by consumer banks?
So, we all know that banks offer a variety of services in addition to keeping our money safe and secure. The most we expect is assistance with bill payment, but did you realise that banks also offer a variety of other services? The services supplied by banks are listed below.
Deposit accounts consist of current accounts, savings accounts, fixed accounts, and other types of accounts are all ways for clients to keep their money safe while collecting income. The type of services provided by each of the three accounts described above is what distinguishes them from each other.
Secured and unsecured loans are the two types of loans available. Secured loans are those that require some form of collateral as a condition for borrowing money from a bank. Your assets, such as automobiles, houses, or other valuables, might be used as collateral to cover the amount of the loan as well as the interest if you are unable to repay it. Mortgages, vehicle loans, and other sorts of loans to individuals that are secured by a single, large asset that the individual intends to purchase are examples of secured loans.
This is typically one of the most profitable revenue streams for a consumer bank. These loans are typically utilised to purchase expensive items such as houses, vehicles, and other similar items. Unsecured loans are the polar opposite of secured loans in that they do not require any form of security prior to the loan being approved. Personal loans, lines of credit, and credit cards are personal loans, lines of credit, and credit cards given to individuals for personal purposes.
Certificates of Deposit (CDs) are safe, low-interest investments that you can commit to at some banks. These investments are safer than conventional investments since they are monitored by the bank, which ensures that you do not lose a significant amount of money.