What is Commercial Banking?

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.