Consumer Finance Universal Banking
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Transcript of Consumer Finance Universal Banking
• A banking system in which banks provide a widevariety of financial services, including bothcommercial and investment services.
• Universal banking and private banking often coexist,but can exist independently.
• It is the division of retail banking that deals withlending money to consumers.
• Durables which are financed are Television, WashingMachine, Air Conditioner, DVD/VCD players,Refrigerator, Computers/laptops And other consumerdurables
• SMEs are defined as enterprises with fewer than 500 employees.
• Firms range from one-person consulting shops to larger, publicly traded companies.
• SMEs are present in almost every industrial sector.
• Small firms are defined as producers of goods with fewer than 100 employees or purveyors of services with fewer than 50 employees.
OBJECTIVES OF SME
NEED FOR SME
• Being innovative
• Adapting to change
• Partnering with large businesses
Retail lending is the term used to describe any type of loans that are issued to individual
consumers rather than to businesses or other types of institutions.
Types of Retail Loans
• Housing Loan
• Educational Loans
• Vehicle or Auto Loans
• Personal Loans
RETAIL LENDING IN INDIA
Retail lending in India has fast emerged as one of the major drivers of the overall banking
industry and has witnessed enormous growth in the recent past.
Microfinance is a source of financial services for entrepreneurs and small businesses lacking
access to banking and related services.
• An arrangement in which a bank and an insurancecompany form a partnership so that the insurancecompany can sell its products to the bank's clientbase
• It's a combination of the term 'Bank' and 'Insurance'.
• It means that insurance have started selling theirproduct through banks.
There are basically four models of bancassurance:
• Distribution alliance between the insurance company and the bank.
• Joint venture between the two companies.
• Mergers between a bank and insurer.
• Bank builds or buys own insurance products.
Retail banking is when a bank executes transactionsdirectly with consumers, rather than corporations orother banks.
• Fast Growth of the middle class
• SME banking is the driver for economic growth
• Access to financial services for the un banked
1. Interest rates
2. Credit Rating