What is a bank product?

What is a bank product? One of the definitions says that it is a certificate (or a document) that was issued by a credit and financial institution with the purpose of servicing its customers and conducting related operations. If we speak in clear language, then, for example, in consumer lending, the mentioned product is a loan agreement that regulates the relations of the parties to the transaction.

It is noteworthy that the bank product has not had a clear definition for a long time. But through long debates on this topic and analysis of the specifics of the work of financial organizations , it turned out to be able to determine those elements that are its components. For example, the basic element is technology, which determines the type of a product. These include savings and current accounts of customers, deposits and loans. There is an opinion that in the near future the pledge will lose some of its positions in the sense of significance. The lender will be more interested in the financial condition of the borrower. Reducing attention to material support will be the reason for the activation of entrepreneurs who want to do their own business, bankers say.

Very often the bank product is confused with the service. The latter should be understood as a set of operations for customer service. Distinguish its following varieties:

• all kinds of consultations;
• management of cash flows;
• assistance to the broker in the course of working with securities;
• investment services;
• insurance.

Do you remember what the definition given at the outset says? So, according to him, the bank product is of the following types:

• operations with currency;
• loans to businesses and commercial bills;
• Savings deposit;
• storage of various values;
• check accounts;
• lending to the state.

Do you feel the difference between him and the service?

Automation processes, which are extremely developed in the society today, are an excellent tool, which, if necessary, will promptly bring new types of banking products to the market.

If we talk about the current situation, then the most popular type of "customer satisfaction" is batch service. Within it, individuals and legal entities can use a whole range of services. And the higher the payment for the package, the more their number.

And now let's see what are the sales channels of banking products. First, it's working directly with the client who came to the office. And here we should talk about selling a product that directly interests him. From the first follows the second way - cross-sailing or cross-selling. Its essence lies in the fact that a person receives not only what he came for, but also something "in the load." The most striking example is a credit card "in an appendage" to a salary card. Besides, by the present moment many credit and financial organizations have successfully mastered electronic sales. Most often they are implemented through the Internet banking system. You can not also fail to note the way to promote your services through media channels. Although it must be acknowledged that they are somewhat inferior in efficiency to the same electronic ones.