What is a banking product? One of the definitions says that it is a certificate (or document), which was issued by a financial institution in order to serve its customers and conduct related operations.
Speaking in plain language, then, for example, in consumer lending, the mentioned product is a loan agreement that governs the relations of the parties to the transaction.
It is noteworthy that the banking product for a very long time did not have a clear definition. But through long debates on this topic and analysis of the features of the work of financial organizations, it nevertheless managed to identify those elements that are its components. For example, the basic element is technology that determines the type of a product. These include customer savings and current accounts , deposits and loans. It is believed that in the near future the pledge will somewhat lose its position in the sense of significance. The lender will be more interested in the financial condition of the borrower. A decrease in attention to material security will become the reason for the activation of entrepreneurs who want to engage in their own business, bankers say.
Very often a bank product is confused with a service. The latter should be understood as a set of operations for customer service. The following varieties are distinguished:
• all kinds of consultations;
• cash flow management;
• assistance of a broker in the course of work with securities;
• investment services;
• insurance.
Remember what the definition at the very beginning says? So, according to him, a banking product is of the following types:
• currency transactions;
• loans to enterprises and commercial bills;
• savings deposit;
• storage of various valuables;
• check accounts;
• state lending.
Feel the difference between it and the service?
Automation processes, which are unusually developed in society today, are an excellent tool that, if necessary, will quickly bring to the market new types of banking products.
If we talk about the current situation, then the most popular type of "customer satisfaction" is a package service. Within it, individuals and legal entities can use a whole range of services. And the higher the package fee, the greater their number.
Now let's see what are the sales channels for banking products. Firstly, it is working directly with a client who came to the department. And here we should talk about the sale of a product that interests him directly. From the first follows the second method - cross-selling or cross-selling. Its essence lies in the fact that a person receives not only what he came for, but also something "to the load." The most striking example is a payday credit card. In addition, to date, many financial institutions have successfully mastered electronic sales. Most often they are implemented through the Internet banking system. It is also impossible not to note the way to promote their services through media channels. Although it must be admitted that in terms of efficiency they are somewhat inferior to the same electronic ones.