Advantages to Commercial Banking
Commercial banking describes a setup where a financial institution provides such financial services like accepting and checking deposits, providing real estate and business loans to its customers. Commercial banks take up a large portion of banking transactions due to the many advantages this kind of banking system has. Advantages of Commercial banking are:
– Wide range of services: Commercial banking offers a wide range of products and services to customers compared to other types of banking. Products and services will range from saving and investment accounts to real estate and commercial loans. In this kind of setup, both individuals and corporates are all accommodated.
– Low Charges: Commercial banks tend to charge low prices for services. This makes it easier for most people to open and maintain bank accounts and access other services such as loans. Commercial banking allows customers to get loans at low interest rates.
– Wide distribution: Commercial banking offers many branches compared to other financial institutions. This kind of retail function means one is able to access financial services wherever they may be without having to travel. Some banks even have a global presence. This saves on time and cost thereby promoting faster economic development and general well being.
– Advanced Banking Technology: Commercial banking offers advanced banking services by making it possible for customers to access banking services through the internet. This means that a customer can transact anywhere without moving an inch, as long as they have internet access. Commercial banking also has numerous ATM outlets through which customers can access bank services after banks have closed their doors. This is made possible through use of debit cards. This has enabled a 24/7 banking system which has lead to faster business and personal transactions leading to great customer satisfaction.
– Efficient Customer Relations: Commercial banks provide efficient customer care services to deal with customer problems and disputes. This is done through a well organized calling centre system. This creates better customer relations which results in overall customer satisfaction.
– Reliable feedback system: Commercial banking relies on an efficient and reliable feedback system to keep track of its customers’ needs. In this kind of feedback system, anonymity is assured and customers are free to comment, positively or negatively, on the products and services they get. This kind of bank- customer relationship had made it possible for commercial banks to improve their services based on the needs of their customers, some of which are tailor-made as well. This has led to great customer satisfaction.
These numerous advantages of commercial banking continue to make it the preferred choice of banking by many.