Banking
Student’s Name
Institutional Affiliation
Banking
Banking is an industry that is responsible for handling cash, offering credit, and other financial transactions. They provide certificates of deposit, checking accounts, and savings account. Banking is the safest way to keep credit and extra cash. Bankers use the records of deposit to determine the amount of money that one can be credited with and the interest to be charged (Gambacorta, 2008). There are various types of banking institutions; they include large banks, community banks, and credit unions. All these institutions have their terms of operation, therefore, creating the differences among these institutions. This essay, thus, provides an analysis of these financial institutions and how they operate with their clients.
First, the most attractive factor that entices clients to deal with large banks is that one can easily access their services from a nearby branch and at any time. Clients in large banks are advantaged since there are innovation and technology that enables online banking, mobile banking, and remote checking deposits. They can also get insurance and can transact globally. Besides, there is also a lack of personal attention to the customers. Conversely, community banks offer personalized services to their customers in the local. They value their customers’ demands, thus attracting more small business owners. Their services to the customers have improved their relations with the members of the community. However, the clients in the community banking don’t get the same level of technology as for large banks. Credit unions benefit clients since the profits made are given out to the members in the form of rates, products, and services. The services offered to make one feel to be part of the community (Allred &Addams, 2000). Despite that, there is a lower availability of a range of products in a credit union, and most unions are not insured.
From the text above, it is clear that community banks are the most reliable since they focus on the clients’ concerns. Large banks cover a large geographical area and charge high-interest rates. They are associated with red-tape, which may inconvenience some clients. Credit unions are a non-profit oriented institution that benefits the clients directly in the form of products, rates, and services.
References
Allred, A. T., & Addams, H. L. (2000). Service quality at banks and credit unions: what do their customers say?. Managing Service Quality: An International Journal.
Gambacorta, L. (2008). How do banks set interest rates?. European Economic Review, 52(5), 792-819.