Banking Domain Concepts - What Are They?
A banking domain concepts represent the different entities and parts for which the information about the financial operations is gathered in order to know how the financial field or sectors work around the different products and services, distribution and sales, clients, financial process, technology, people and processes. Every banking domain has some or other specializations that help the people or the organizations to perform their tasks in a better way. Banks are specialized organizations whose main purpose is to lend money and provide financial services to their clients. The main areas of activities that are performed by banks include loan taking, savings, investment, provision of credit, servicing of loans, risk management, estate planning and insurance. In addition, they also provide money and funds for various other purposes such as purchasing real estate, dividends, capital gains, etc.
This article mainly focuses on explaining the above-mentioned areas of activities and providing the necessary details regarding the banking domain concepts. It looks at the core concept of banks, their specializations and their processes. It also describes the scope of growth of banks. All these topics are discussed in detail in the following paragraphs. The first and the most important topic that is looked into here are the core concept of banks which is nothing but a particular field where all the activities related to banking take place. This is the most important topic in itself since it describes the working model and its applications.
Another important concept in the domain of banks is the finance domain which basically defines the relationships between money and another financial service. For instance, a bank may lend money under the provisions of an agreement and this type of agreement is further classified as open or closed. The open arrangement facilitates the customer needs with respect to the information regarding financial services while the close arrangement facilitates information about the loan taking as well as other financial activities.
In addition, banking domain concepts include customer needs analysis. This is the process of identifying customer needs and expectations and then providing services based on these identified needs. All the processes of lending the money are carried out keeping in mind the customer needs. Thus, if a person wishes to lend money, he/she has to go through a detailed analysis regarding the credit history, income level as well as other factors. In the same way, all the departments of the bank like the treasury department, cash office, tellers, security personnel etc have a specific and defined role to play in relation to the satisfaction of customer needs. In a way, this process of analyzing and developing services based on customer needs forms the basic framework of all modern banks.
On the other hand, the third area of banking domain concepts is testing and customer needs testing. This is an area that tests the ability of a particular bank in dealing with varied kinds of customer needs. In this way, the bank is able to adjust its overall operational procedures and the functioning procedures in accordance with the varying demands of the market. The primary aim of this testing is to find out whether the existing procedures and operating procedures are still working in the interest of the customers or not. Another aim is to find out whether there is a need for modification and degradation in order to accommodate the changing market needs and demand.
Apart from all these areas of banking domain concepts, there are many other activities that are performed within the industry. All the procedures discussed above have their own significance and they have been instrumental in shaping the financial industry. These procedures have been developed to make things easier for the banks in all aspects of operations. So, next time when you go to your favourite bank and apply for a loan or a credit, you will be happy to know that all the procedures and aspects discussed above are being performed by your institution.
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