Why Banking Is A Necessity
Banks sometimes offer special services to loyal customers, such as preferred rates and investment advice at no extra charge.
Banks sometimes offer special services to loyal customers, such as preferred rates and investment advice at no extra charge. A bank is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either directly or indirectly through capital markets. The bank accepts deposits and channels the money into lending activities.
Due to their importance in the financial stability of a country, banks are highly regulated in most countries. Banks are a necessity as they acts as an intermediary between people having surplus money and those requiring money for various business activities.
Banks also allow for the public to gain access to bank accounts. Security is an important reason why people store their money in bank accounts. When you’ve a bank account, you’re able to access physical cash wherever there’s a bank branch or ATM. Alternatively, you can also pay for goods and services electronically through a debit card, which is linked to your bank account.
If you regularly deposit cash, a traditional bank may be more practical and efficient. This can also aid and assist in the use of ATM machines for bank transactions such as depositing of money.
Banks sometimes offer special services to loyal customers, such as preferred rates and investment advice at no extra charge. In addition, routine services such as notarisation and bank signature guarantee aren’t available online. These services are required for many financial and legal transactions.
A traditional bank provides the opportunity to develop a personal relationship with that bank. Getting to know the people at your local branch can be an advantage when you need a loan or a special service that’s not normally offered to the public.
A bank manager usually has some discretion in changing the terms of your account if your personal circumstances change. They can help you solve problems such as reversing an undeserved fee or service charge.
Your banker will also get to know you and your unique needs. If you’ve a business account, this personal relationship may help if you need capital to expand. It’s easier to get the bank’s support if there’s someone who understands your business and can vouch for your operating plan. And with transaction issues sometimes a face-to-face meeting is required to complete complex transactions and address complicated problems.