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Financial Institutions and Services
Notes 3. Provide personal loans, commercial loans, and mortgage loans (typically loans to purchase
a home, property or business)
4. Issuance of credit cards and processing of credit card transactions and billing
5. Issuance of debit cards for use as a substitute for checks
6. Allow financial transactions at branches or by using Automatic Teller Machines (ATMs)
7. Provide wire transfers of funds and electronic fund transfers between banks
8. Facilitation of standing orders and direct debits, so payments for bills can be made
automatically
9. Provide overdraft agreements for the temporary advancement of the bank's own money
to meet monthly spending commitments of a customer in their current account
10. Provide charge card advances of the bank's own money for customers wishing to settle
credit advances monthly.
11. Provide a check guaranteed by the bank itself and prepaid by the customer, such as a
cashier's check or certified check
12. Notary service for financial and other documents.
Other Types of Bank Services
Private banking - Private Banks provide banking services exclusively to high net worth
individuals. Many financial services firms require a person or family to have a certain minimum
net worth to qualify for private banking services. Private banks often provide more personal
services, such as wealth management and tax planning, than normal retail banks.
Capital market bank - bank that underwrite debt and equity, assist company deals (advisory
services, underwriting and advisory fees), and restructure debt into structured finance products.
Bank cards - include both credit cards and debit cards. Bank of America is the largest issuer of
bank cards.
Credit card machine services and networks - companies which provide credit card machine and
payment networks call themselves "merchant card providers".
Foreign Exchange Services
Foreign exchange services are provided by many banks around the world. Foreign exchange
services include:
Currency Exchange - where clients can purchase and sell foreign currency banknotes
Wire Transfer - where clients can send funds to international banks abroad
Foreign Currency Banking - banking transactions are done in foreign currency.
Investment Services
Asset management: The term usually given to describe companies which run collective investment
funds.
Hedge fund management: Hedge funds often employ the services of "prime brokerage" divisions
at major investment banks to execute their trades.
158 LOVELY PROFESSIONAL UNIVERSITY
