| Global banking involves similar
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| | they are not subject to reserve
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| operations as local banks do. However,
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| | requirements. The restrictions on
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| global banking usually deals with money
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| | interests can be leapfrogged in the same
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| and foreign exchange; whereas local banks
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| | way.With innovation the arrival of new
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| concentrate on lending, asset management
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| | products is inevitable. Banks are
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| and consulting services.There are
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| | engaging heavily to attract customers
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| numerous ways in which you could segment
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| | with their new products and
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| the banking
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| | opportunities. Retail and clients'
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| industry. One of the ways could be the
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| | services are listed right at the
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| sector in which the bank
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| | top of a modern banks priority. As said
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| operates. For example, you could have
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| | before clients are becoming
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| agricultural banks (Credit
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| | more and more demanding and force the
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| Agricole) or employees bank (any credit
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| | banks into finding new ways of
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| union). You could also do the
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| | satisfying them. What is new today is
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| segmentation by fields of activities.
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| | standard tomorrow. Such new
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| Such as commercial banks
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| | products include the arriving of ATM
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| (Citibank) or investment banks (Goldman
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| | machines and their evolution from
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| Sachs). Commercial banking
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| | cash-dispensing machines into financial
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| covers services such as cash management
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| | service depots, and telephone
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| (money transfers, payroll
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| | baking, which allows customers to
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| services), credit services, deposit
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| | arrange from their phone for account
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| services and foreign exchange.
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| | balance statements, transfers,, time
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| Whereas, investment banking is in charge
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| | deposit transactions and
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| of services like asset
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| | application for a variety of banking
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| securitization, coverage of mergers and
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| | transactions. Some banks have
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| acquisitions, securities
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| | even cut the time for loan approval. The
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| underwriting, etc. However, because of
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| | Bank of Ryukyus, Japan
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| the deregulation of the
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| | approves a loan in 15 minutes. Banks are
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| financial sector, some of the commercial
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| | also keeping a look out on
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| and investment banking
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| | asset management since this is proving
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| institutions are competing directly in
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| | to be a rather prosperous
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| money market operations,
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| | market. People of today are much more
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| private placements, bonds underwriting,
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| | aware of how they can use their
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| etc. It is, however, believed
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| | assets to create a greater wealth; hence
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| that all these segments are secondary to
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| | banks need to readjust their
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| the geographical segmentation
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| | product line. However, there are
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| of the global banking industry.When
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| | numerous other products that banks
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| defining the geographical segmentation it
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| | are starting to integrate into the
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| is probably best to
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| | markets now. Such as trading and
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| start with the main financial markets on
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| | positioning (e.g. Commercial Bank), risk
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| the globe and its
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| | management products or
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| corresponding financial institutions. In
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| | financial engineering and structured
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| Europe, for example, we have
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| | finance (hedge funding).Challenges:As
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| the ECB which is in charge of monitoring
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| | clients are becoming more and more
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| the monetary policies for the
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| | demanding, the banks need to
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| Euro zone. Thus, the initial function of
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| | think today of the challenges of
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| the 12 national banks, that
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| | tomorrow. With respect to
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| are members of the Euro Zone, is put in
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| | centralizing financial institutions, a
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| question. So, it is simply a
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| | commonly accepted approach
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| matter of time until there are some few
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| | needs to be found, because the issue of
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| but powerful financial
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| | giving up sovereignty is
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| institutions that are going to monitor
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| | definitely the issue. On a more micro
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| huge blocks of our financial
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| | perspective banks will surely
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| globe. Even in the USA, where there is
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| | need to start developing their services
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| no national bank, there
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| | to a higher level. This could
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| nonetheless is a strong will to
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| | vary from a 24 hour service, more ATM
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| centralize the various commercial
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| | machines, international
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| banks, which at the moment are estimated
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| | acceptance of credit cards to lessen
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| to be around 8000. During the
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| | transaction cost, etc...Furthermore, will
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| period 1984-1994, the number of US banks
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| | banks need to product profitability in
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| decreased by 30% due to
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| | one form or
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| successful mergers and
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| | another? A lot of banks are already
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| acquisitions.Moreover, a big change in
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| | looking closely into their hit
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| the structure of the global banking
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| | ratios while considering the customer
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| industry
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| | environment and pensions. With
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| is the development of world Islamic
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| | the help of this research banks can use
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| banking. 10 years ago Islamic
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| | the automation to develop new
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| banks accounted for only US $50million,
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| | products tailored to specific
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| now they are spread in 75
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| | customers.On the marketing side banks
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| countries and account for US
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| | have started to really hit it off in the
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| $250million, which represents 15% of the
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| | late 90s. The fact that banks are now
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| global banking industry.Another trend in
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| | developing customer Information
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| the structure evolution, which is worth
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| | Systems enables them to create specific
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| mentioning,
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| | advertisement campaigns for
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| is the retailers and automobile -makers
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| | specific clients. This is especially
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| like Mitsubishi that become
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| | important for smaller banks since
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| banks.Innovation and product
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| | they often don't have the luxury of a
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| development:Naturally, any change in the
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| | large promotional budget. On a
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| financial environment stimulates new
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| | similar token banks are also forced to
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| innovations. One of these innovations is
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| | use customer databases to
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| increasing liquidity. When a
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| | minimize their loan risk. Especially in
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| bank decides to go global, it is
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| | times of economical hardship
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| naturally catering to needs and
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| | banks need to be extremely careful to
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| demands of more customers. This induces
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| | avoid bad debt. Hence the
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| a greater demand for
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| | Customer Information Systems will need
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| liquidity. Yet, another change is the
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| | to be integrated into the banks
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| reduction of agency and
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| | loan system.Furthermore, banking should
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| transaction costs. As market size
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| | be following the pace of globalization of
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| increases, the cost of transactions
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| | the world. Banks are expanding
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| increases as well. Thus, minimizing
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| | internationally by creating branches in
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| costs will be a major issue for
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| | host countries. However, there should be
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| banks. One of the ways in which this
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| | a better coordination between
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| might be achieved is by economies
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| | home and host country branches to make
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| of scale. This means bundling together
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| | financial processes more
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| basic instruments such as funds
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| | effective and efficient. With the
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| of investors (creating mutual funds).
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| | increase of international trade, the
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| Another way is to computerize
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| | banks, as an intermediary, should
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| majority of the systems. This falls
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| | develop instruments to better serve
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| under the Business Process
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| | exporters, importers and shipping
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| Re-engineering. Virtual banking is also
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| | companies.Although, some of these points
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| a big part of the cost cutting
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| | seem pretty obvious, they are none the
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| innovations.Another innovation that
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| | less points that need to be thought
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| banks need to use is circumventing
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| | about, especially when penetrating
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| regulations
| |
| | new marketsThe article was produced by
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| and internal constraints. One way to
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| | the member of
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| bypass the reserve requirement
| |
| | Sharon White is a senior writer and
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| constraint was to establish money market
| |
| | writers consultant at term papers. Get
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| mutual funds. These are not
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| | some useful tips for thesis and term
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| considered as deposits and thus require
| |
| | paper writing .
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| no interest payments. Hence,
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