Question

Briefly explain the differences between transactions banking and relationship banking.

Answer 1

Transaction banking

Transaction banking is a process of money transfer typically for corporates by bank transaction banking is a process of money transfer typically for corporates by bank it transaction banking is a process of money transfer typically for corporates by bank it includes commercial banking products transaction banking is a process of money transfer typically for corporates by bank it includes commercial banking products domestic transaction banking is a process of money transfer typically for corporates by bank it includes commercial banking products domestic and transaction banking is a process of money transfer typically for corporates by bank it includes commercial banking products domestic and cross border payments transaction banking is a process of money transfer typically for corporates by bank it includes commercial banking products domestic and cross border payments transaction banking is a process of money transfer typically for corporates by bank it includes commercial banking products domestic and cross border payments professional risk mitigation transaction banking is a process of money transfer typically for corporates by bank it includes commercial banking products domestic and cross border payments professional risk mitigation for transaction banking is a process of money transfer typically for corporates by bank it includes commercial banking products domestic and cross border payments professional risk mitigation for international trade transaction banking is a process of money transfer typically for corporates by bank it includes commercial banking products domestic and cross border payments professional risk mitigation for international trade and the transaction banking is a process of money transfer typically for corporates by bank it includes commercial banking products domestic and cross border payments professional risk mitigation for international trade and the provision of Trust transaction banking is a process of money transfer typically for corporates by bank it includes commercial banking products for international trade and the provision of Trust agency transaction banking is a process of money transfer typically for corporates by bank it includes commercial banking products domestic and cross border payments professional risk mitigation for international trade and the provision of Trust agency depositary transaction banking is a process of money transfer typically for corporates by bank it includes commercial banking products domestic and cross border payments professional risk mitigation for international trade and the provision of Trust agency depositary custody and transaction banking is a process of money transfer typically for corporates by bank it includes commercial banking products domestic and cross border payments professional risk mitigation for international trade and the provision of Trust agency depositary custody and related transaction banking is a process of money transfer typically for corporates by bank it includes commercial banking products domestic and cross border payments professional risk mitigation for international trade and the provision of Trust agency depositary custody and related activities transaction banking is a process of money transfer typically for corporates by bank .

transaction banking is a process of money transfer typically for corporates by bank it includes commercial banking products today you may not know that everyday billions of transactions are made around the world it is tremendous and an extraordinary amount of money which is being transferred from here to there.

What the word transaction simply means here is the process of money transferring from one place to another nobody today specially the corporate world can never deny the transaction is one of the most critical parts of the business and therefore the banks all over the world need to be involved in this area and they called transactional banking.

Relationship banking

A strategy used by banks to enhance their profitability they accomplish this by cross selling financial products and services to strengthen their relationship with customers and increase customer loyalty relationship banking involve offering customers a broad array financial products and services that go beyond simple checking and savings account

customer of a bank may start out with a simple checking on savings account but relationship banking involves a personal or business bankers print certificates of deposit safe deposit boxes insurance investments credit card all type of loans at business services they also include specialised financial products design for specific demographics such a student seniors or high networth individuals.

Banks that practice relationship banking take a Consulting approach with customers getting to know their particular situation and needs and adapting to changes in their financial business lifes the relationship banking approach is easily observable in a small town bank but it is also practice in the retail branches of large money Central banks weather for an individual or small business relationship bankers will engage in hitech service to try to make their banks the one stop shop for their A to Z needs cross selling is the operandi of relationship bankers but they must be careful customers may be able to take advantage of banks desire to develop relationship banking by obtaining favourable terms or treatment with regard to rates and fees as well as obtain a higher level of customer service which is specially true in smaller Bank such as community Bank.

When one speaks about relationship banking it is usually in the context of bank sales the relationship banker is the go to person for the client he or she is usually has seen your bank uh who is familiar with the various products and services offered by his bank and can connect the dots for his clients including suggesting specific Strategies and meetings with product sales products covered by relationship banker will almost likely include transaction banking services such as custody investor and fund services trade finances or cash management.

Production banking is an umbrella of services provided by global banks in cash management treasury as well as critically trade finance services that means all Export Import transactions all inter office transfers and payments for a global form can be managed and bills discounting and other products in the transaction banking division.

Relationship banking usually refers to the personal and small businesses banking though it may also be referred to craft of building corporate account relationship with an all divisions of bank primarily relationship banking relies on cross selling of various businesses of the bank to the same client for individual through a single primary contact and based on relationship level fees with Deep transaction level discounts