Question

Explain the innovative functions of modern banking that you observe in your daily life routine.​

Answer 1

Answer:

Innovation means something new or something which had not been done before. The same goes for banking section as well. There are many sections in banks which are going through or have gone through innovation in recent past. They are no longer restricted to age-old (traditional) methods. Thus, to increase the business avenues and capture the new market banks are resorting to innovation. This term innovative banking is being in use a lot nowadays.There are many types of banking facilities that the banks have started in recent years. These are the following types of innovative banking used by the banks these days:

Mobile Banking

Mobile banking has been a revolution in the past few years. It has completely changed the way banking systems are working. Thus, it is a system that allows customers to perform many types of financial related services through a smartphone.

These include services like ATM locations, bill payment alert, inter or intrabank payments, bill payments, and many more. So, services are available at the fingertips of every person.

Internet Banking

Internet coverage in the last few years has increased drastically. This service is online banking, web banking, or virtual banking.

Thus, this banking service allows its users to execute and perform any financial transaction or service with the help of the Internet. The banking facilities are provided traditionally at a local bank outlet.

This includes bill payments, a deposit of money, borrowing of money, and other services are all available at one place. This service happens with the use of the Internet facility. In India, ICICI Bank was the first bank to avail it’s customers the facility of Internet banking.Retail and Wholesale Banking

Like other businesses, the banking sector to has evolved into retail and wholesale banking and it is also one of the parts of innovative banking.

Here, retail banking refers to the banking in which the transactions which are done daily by the banks are executed with consumers.

Thus, this is done instead of transactions with other banks or other corporates. The services under this are:

Personal loans

Savings accounts

Checking accounts

Debit card

Credit card

Wholesale banking is completely the opposite of retail banking. It refers to the business being conducted with the business and industrial entities.

Thus, in wholesale banking, trading houses, domestic companies, and multinational companies are included. So, there are many services which are included in the wholesale banking and these services are:

Value-added services

Fund based services

Non-fund related services

Internet banking

Multinational and offshore banking

Multinational banking is the banks that are present in more than one country. The main services are available in more than one country in these services. Thus, these banks are also called international banks.

The first bank to offer its services outside India was Indian bank in 1946. Currently, Bank of Baroda has the maximum number of the overseas franchise in India.While under offshore banking, the banking activities are performed in the currencies that are different than the currency of the country in which the bank account is opened. The banking services in these banks remain the same though.

Narrow and Universal Banking

Narrow banking includes keeping together the higher part of deposits in risk-free assets like government securities. In India, this is basically in performance to reduce the size of the NPAs.

While commercial, investment, insurance, and many other financial activities combine to form universal banking. Thus, in this practice every product is available.

Answer 2

Answer:

A commercial bank is the most important components of the whole banking system. A commercial bank is a profit based financial institution that grants loans, Accept deposited such as overdraft facilities and electronic transfer of funds.

Explanation:

• It is obvious that an increase in the number of people using digital banking will result in an increase in cybercrime. The pandemic increased the number of opportunities for cybercriminals, be it through phishing, fraud, credential breaches, etc.
• cybersecurity threats must continue to use a variety of approaches to keep themselves and their clients secured.  A cybersecurity plan, such as the CIS Controls, boosts your entire cybersecurity posture.
• Banking customers today expect an easy and straightforward digital banking experience. Prioritizing emerging digital banking technology and attempting to blend digital with the human element, on the other hand, creates a conundrum for smaller financial institutions.
• While proper technologies and smooth rollouts are critical, effective digital transformation necessitates a strategic understanding of immediate customer demand.
• Customer data can be used by your institutions to expose cybersecurity risks such as suspicious activity, but transactional data and robust CRM technologies allow you to make better-educated judgments about cybersecurity.
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• Producing quality content for your audience is an efficient approach to attract new leads while also giving useful resources that boost engagement with current clients. This is a powerful digital marketing tactic that banks utilize to advertise almost any product or service.
• Community banks can outperform others and acquire prominence at the top of search engine results pages by adopting techniques like pay-per-click (PPC) advertising with platforms like Google Ads. Paid search campaigns are effective because they can be tailored to a specific audience based on the exact phrases they are searching for on Google.
• Banks are confronting an influx of new competitors in the financial market, including fintechs, BigTech, and even non-financial entities. Banks can use cloud computing to store data and applications and access scalable computer resources on-demand via the internet.
• Biometric technology enables financial institutions to strike a balance between security, speed, and convenience in order to provide a hassle-free mobile banking experience. Biometrics are tangible human traits that can be used to confirm a customer's identification.
• Banks can actually listen to their consumers and provide individualized financial services that benefit them through analyzing data. Banks that can consistently provide personalized offerings and individualized experiences for their consumers will undoubtedly win in the future.
• Banks can get more customers by giving referral bonuses for referring friends and getting them to sign up.
• RPA, artificial intelligence, and machine learning are all technologies that help you reduce expenses, increase efficiency, and process improvement.
• Microservices subdivide the entire banking application into separate services that can run independently while collaborating effectively.

The function of commercial banks are:-

• A commercial bank is mainly dependent on public deposits. Deposit like demand deposits, time deposits
• The most important function of a commercial bank. the deposits are used by a commercial bank for the purpose of granting a loan.
• A commercial bank act as agent of the customer by performing a various function like. collecting checks, collecting income, paying expenses.
• A commercial bank also provides the locker facilities, Issuing traverse check and transferring the funds.
• Other functions are creating money, electronic banking.

Reference link

• https://brainly.in/question/11837010