WHAT IS COMMERCIAL BANKING?
We all have some sort of experience with commercial banking services. When you needed that education loan, or when you wanted to put some money in a fixed deposit, you approached a bank. Banks typically take deposits from customers and use that to extend loans to other customers. These two are the primary services of a commercial bank. Taking in deposits is a liability for a bank, so these come under the ‘Liabilities’ division, while lending a loan is an asset and comes under the “Assets’ division. Banks have several other products within these two broad headings of assets and liabilities. A commercial bank’s suite of products include but is not limited to:
Under Liabilities:
• Current Accounts
• Savings Accounts
• Fixed Deposits
• Term Deposits
Under Assets:
• Loans
• Credit Cards
• Trade Finance
• Commercial Vehicle funding
Other Services:
• Insurance
• Investment services
• Money transfers
The career we are going to discuss is that of a Commercial Banking Relationship Manager (RM). A Commercial Banking RM is responsible for generating, maintaining and growing a bank’s customer base. The role requires knowledge of all the banking products on offer (Banks keep improvising on the type of products, credit terms and interest rates), and a penchant for understanding a customer’s requirement and matching it with the products on offer. Typically, it requires good salesmanship as well as comfort with banking products.