What are the different types of banking? There are many types of banking system available. You have to understand that every organization has its own needs. Different types of banking system are: Sole proprietorship, partnership, joint-venture, syndicate and cooperative banking. It is quite easy to understand how these types of banking system works, if you look closely at each type. However, it will be difficult to compare each type to find out which type is the best for your business or institution.
Types of Banking System Group Banking. Group banks are normally designed to work better for groups and not individuals. An example is a business plan offered freely to several employees. Group banks can also offer a more customized banking service to the several members as if the bank designate one senior manager, who is usually more knowledgeable regarding the groups particular needs, as advisor. In some countries, group banks are also allowed to compete with other types of banks that cater to individuals alone.
Branch Banking. Branch banks, sometimes known as community banks are usually available in areas, which are considered rural or small towns. Mainly, there are two types of branch banks; one is the commercial branch bank and the other is the unit banking system. Branch banks offer a variety of services to their customers. They often have branches in malls, shopping complexes, offices, post offices, schools, hospitals, etc. They also have smaller branches that have access to only a limited number of services.
Types of Banking System Unit Banking. Unit banks are usually available in many places, even though they are called traditional banks. The main types of banking system with units are: Branch banking management system, direct deposit banking management system, branch banking with a high-fee service, and direct deposit banking management with a low-fee service. These types of banking systems give the customers choices for how they want to manage their accounts. With this type of banking system, customers can also choose a location for receiving their funds such as a bank chest, a vault, or a post office.
Types of Banking System Commercial Banks. There are two types of commercial banks in India. These banks are prominent in Indian life Insurance sector and also in property, precious and personal assets, in commercial trade, and in the finance industry. The commercial banks are open all days, every day. They have branches in almost all the major cities in India such as Mumbai, Chennai, Bangalore, Kolkata, Delhi, Hyderabad, Pune, Chennai, etc.
Branch Bank. Branch banks are prominent in the local area with branch offices in different cities and towns. Customers or clients can go and ask for help from the branch manager. They are responsible for managing the funds of the account of the customer. They can give financial services such as bill transfer, ATM cash withdrawals, pre-authorization for non-banking services, and many more financial services such as home loans and auto loans, credit card transactions, business loans, etc.
Debit and Credit Card Bank. The other types of banking system are: the central bank, a trust worthy, cooperative, retail money lender, offshore money lender, unit banking system, mutual-aid, and the retail banking system. Among these various types of banking system, the unit banking system is the most popular and prominent in India. This type of banking system operates on the principle of advances on the basis of deposits. In unit banking system, a particular customer can make advances by giving a fixed sum of money to the central bank, which then in turn would advance that particular amount to the particular customer.
Automated teller machines (ATMs) are considered to be one of the best innovations of the present generation. Typical ATMs function on the principle of a machine receiving an account number from a customer, loading the given account number to a specialised piece of equipment, and then giving that piece of equipment an automated electronic transaction request (ATS), which is then carried out by the employee. The work process is such that it requires fewer human employees than it does in branch banking and other types of banking system. It is also relatively easy to expand ATMs as well. In addition, an ATM is usually supported by a particular bank and most of the banks offer ATMs along with their traditional banking services.