Question

What factors appear to influence the types of services an international banking firm chooses to offer its customers?

Answer 1

The types of services usually offered by an international bank are :

• Global cash management
• International trade finance
• Foreign currency and exchange services
• Foreign accounts receivable and working capital financing
• Letters of credit
• Export-import financing
• Offshore banking
• International investments

The factors that influence the types of services that an international banking firm chooses to offer its customers are :

• Legitimacy of customer - Banking firms have to legally track and report suspected money laundering activities
• Legal factors - certain services may be restricted or highly regulated in some jurisdictions
• Type of customer base - Based on the requirements of customer. If the customers mostly demand a particular service, then only that service may be offered. On the other hand, if some services have no demand in the market, the firm would not offer those services
• Competition - if the international bank is unable to competitively price its service in the market, it may not offer the service at all