Personal Banking

Intensive integration of banking services to individuals in the national financial and credit system has led to the quality development of the services provided. At the same time, the population in the demand for banking services has grown.

The concept and essence of personal banking

Personal banking services are a range of financial credit and service operations related to the provision of services to private customers of the bank in the framework of the realization of their financial interests. Banking operations related to servicing individuals include 4 categories:

1. Service – these are all operations in which there are only two participants: a private individual and a bank. This includes deposits, bank lending, settlement transactions, etc.;
2. Corporate and retail – servicing bank operations between individuals and companies, while the bank acts as an intermediary in such transactions. For example, payment of utilities, goods, etc.;
3. Technological – providing advanced services, including remote banking and account management systems;
4. Electronic payments – a range of services, including the issuance and maintenance of various types of bank cards, payments, electronic document management.

Personal banking services can be represented as follows:

• Deposited operations – services for the accumulation, savings and storage of funds;
• Lending to individuals – the issuance of loans at a loan interest;
• Accounting and cash transactions – all types of accouting transactions made both with opening and without opening an account with a bank.
• Currency exchange – conversion operations with cash and non-cash equivalents of different currencies, the exchange of which is carried out by the bank.
• Storage services – rental safes and related services. Deposit operations are implemented within the framework of three goals pursued by private individuals who place funds in a bank.

The provision of personal loans is carried out as part of the organization of lending to the bank on general principles.

Accounting operations include cash services: receiving and issuing cash, charging and debiting funds on the account, making transfers, etc. Currency exchange transactions are related to settlements in foreign currencies, buying and selling currencies. Storage services allow individuals to transfer to the bank for storage of valuables, documents in a bank cell.

Principles of banking services to individuals

In this case, these the rules that banks adhere to when servicing individuals:

• Charge – all bank services must be compensated by equivalent payment by the client;
• Rationality – satisfaction of the interests of customers through financial and credit operations;
• Providing liquidity – maintaining the ability to pay off the obligations of both the bank and the client;
• Mutual binding – taking into account the interests of both parties and the implementation of mutual agreements;
• Partnership – the bank and the client are equally interested in each other, the bank can demand only what is stipulated by the contract;
• Secrecy – the bank is obliged to keep banking secrecy in accordance with applicable law.

• Wesley Cook