A household financial bank is an organization that provides various types of financial services which mainly includes accepting deposits and offering credit. The fundamental nature of all household financial banking operations is that the products and services of the bank are customized to meet individual banking and additional requirements that includes everything from a checking account to investment advice.
It is generally understood that a household financial bank holds a banking license to conduct the most fundamental banking services. In order to operate profitably, the household financial bank levies transaction fees on financial services and charges interest on the money it lends.
A household financial bank additionally facilitates money transactions such as wire transfers and cashiers checks, issues credit and debit cards, maintains ATMs, and stores valuables, particularly in a safe deposit vault.
The various products and services that are available through personal banking include:
Check Cards with Rewards
Personal lines of Credit
Personal Trust and Private Banking Services
Insurance Services and Advisory Services
Some specialized services such as Insurance, Investment Advice, and Wealth Management are offered to the high end segment of the market.
Today the most important feature in household financial banking is the infusion of technology-enabled customized products and services like multi-location banking, ATMs, and the delivery of services through modes like telephone and the Internet. The idea is that the customer should be delivered everything at his convenience and need not visit the branch for services that could be delivered to him even otherwise. The household financial bank provides single window service, which means that customers can avail of all the banking services through just one counter and need not spend his valuable time in unnecessarily running from one counter to another.
Household financial banking is the same as personal banking which is fast catching up in many countries around the world and is expected to contribute significantly to the bank’s total revenue. Nearly one fifth of the customers contribute an overwhelming bulk of the banks’ business which makes it very important for the household financial banks to service these customers and consolidate relationship with them.
Last Updated on : 1st August 2013