What is the importance of CRM in the banking sector?
CRM software will improve a bank’s success levels in meeting its sales, marketing and customer objective goals. A CRM software is of great use to track, assess and analyse customer communications for a banking or financial services firm.Here are five important perks of having CRM for the banking industry:Improved Customer Retention: A CRM system makes it a cakewalk for banking firms when it comes to customer retention.Well Informed Customers: CRM software provides crucial customer insights and patterns.Customer Satisfaction: Customer satisfaction can be achieved by using functionalities like case module in a CRM system, in which they can track customer queries and their solutions, sending greetings using Email and SMS, monthly statements, etc.Benefits for Customers: With up-to-date customer information, banks can offer more personalized and optimum services to their customers.Benefits for Employees: Employees are empowered with all the crucial and accurate information at their fingertips to deliver high quality service and meet customer expectations.CRM solution mainly focuses on maximizing the value for customers and business. To know in detail about how a CRM software can boost your banking firm’s bottom-line and help you fetch more customers whilst retaining the existing customers, contact Sage Software Solution at sales@sagesoftware.co.in, they offers best CRM solution for banking sector.Hope this helps! Cheers!!Original Source: 5 Perks of CRM for Banking Industry
Why are the gold reserves important for the government of India?
GOLD being the most energetic word for woman in INDIA is kept as a reserves because of couple of reasons.Technically ..If you choose any currency notes ( INR, USD , EURO or any) these currency notes can be devalued at any time. i.e it might got tore off or it might be faded away or it might be unusable if your country declares demonetization .If required i can print any number of currency notes i want. Whereas gold being the rarest element it cannot be created easily. It is a limited amount of substance.Fundamentally..This is one of the common medium for exchanging currency.You can deposit your gold at world bank and borrow equal amount of money if required. Whereas i cannot borrow money from Banks for silver, land papers, Bitcoins e.t.cIt can beat inflation.If a war is declared against any country, the price of your car, furniture , home e.t.c will start inflating but not Gold.Gold is considered as stable commodity across world.
What is the importance of global governance?
Global governance refers to a way in which global affairs are managed. There are several reasons which have promoted the idea of the global governance. Most imp reason is that no single nation has got all the resources to tackle problems plaguing humanity and this planet - poverty, malnutrition, disease, climate change, disaster risk, organized crime, terrorism etc. These problems ( like Ebola, retreating glaciers etc) do not recognize political boundaries and are a risk to us all. Second reason is globalization, with which world has woven into one fabric where internal policies of one nation can affect the whole world.United Nations is one such organisation which is striving for global order. Other important organisation can be classified as:-Social : UNICEF, ILO, UNESCOPolitical : NATO, NAM , G-20Financial institutions like: World Bank, IMF , OECD , WTOSecurity: NSG, NTBT, UNSCInternational judiciaries : International court of Justice, International Criminal courtEnvironmental: IUCN , IPCC, ISACultural and Regional: SAARC , BIMSTEC , BRICS , Commonwealth etcHowever, there are multiple concern such as lack of representation of developing countries in these forums, non-compliance of rules framed, difficult to build consensus over few points, funding issues. With the growing inequality these forums are currently under criticism. Hence, reforming these institutions with the changing conditions & involving all stakeholders is must for achieving peace, socio-economic equality & SDG.
What is the importance of commercial banks?
A Commercial bank is a financial institution that provides various financial service, such as accepting deposits and issuing loans. Commercial bank customers can take advantage of a range of investment products that commercial banks offer like savings accounts and certificates of deposit. The loans a commercial bank issues can vary from business loans and auto loans to mortgages.BREAKING DOWN 'Commercial Bank'Commercial banks offer their customers investment products such as savings accounts, checking accounts and certificates of deposit. Bank customers like such products because in the United States, they are secured by a government agency, the Federal Deposit Insurance Corporation (FDIC). In exchange for their money, commercial banks offer their customers interest on their deposits. The way commercial banks make money is by using their customers' deposits for loans with interest rates above the rates they pay to depositors. The spread between what the banks pays out in interest and what it takes in in interest is the bank's net interest income.The types of loan a commercial bank can issue vary and a commercial bank may specialize in just one or a few types of loans. Commercial banks can offer mortgages, which help borrowers buy homes with the homes as the collateral backing the loans. They can also issue car loans with automobiles as collateral. Commercial banks also can engage in issuing personal loans, lines of credit or credit cards. In addition to the interest it earns on its loan book, a commercial bank can generate revenue by charging its customers fees for mortgages and other banking services.Evolution of Commercial Banks:-The traditional commercial bank is a brick and mortar institution with tellers, safe deposit boxes, vaults and ATMs. However, today some commercial banks do not have any physical branches and require consumers to complete all transactions by phone or Internet. In exchange, such commercial banks generally pay higher interest rates on investments, deposits and charge lower fees as they do not have to maintain physical locations and all the ancillary charges that come along with them such as rent, property taxes and utilities.Watch the Video to understand better:-
Why is it important to separate central bank and the goverment?
Central Banks are counterproductive and should be abolished. Central Banks, even though they are private institutions, allow for redistribution of wealth on both a domestic and national scale. They use the term "loans" as a disguise to shift money around to political interest groups whether it be big banks, political constituencies, or other countries governments (i.e. the World Bank/IMF). These loans are rarely paid back and are funded by the taxpayers through tax revenue and future inflation. In the U.S., the Fed is separate from the government, yet it contains power that only Congress should have and that is the power to print money. It doesn't matter if central banks are "private" or not from the government, they are still used to carry out the same corrupt policies. In our case, the Fed promotes socialist policies and nobody has the power to stop this from happening.
Why are banks so important?
Back in the day, banks were started simply as a place to store their gold, so that people wouldn't break in and steal their gold. People would pay a small fee to keep their stuff in a secure vault. This is what a bank should be for. However, after a while, the vault owner realized he could loan out people's gold and charge a small fee, as long as everyone didn't want all of their gold back at once. After we quit using gold as a form of currency, and started printing money, banks took it a step further and started using fractional reserves, in which banks were able to loan more money than they actually had, because they could just print more. This is why the economy is becomming screwed up, because it removes accountability, and overinflates the dollar. I wouldn't use a bank if my work would just pay me in cash. I see no need to mess around with a bank, unless you have more money than you can safely store, for fear of theft
What is the importance of banking to a nation’s economy?
In terms of a strict functional explanation, banks are the intermediary for the money supply of an economy. The treasury departments of a country determines the monetary policy for that economy (such as interest rates and capital infusion), and use the central bank (e.g. the Fed or ECB) as the distributor. They then increase or decrease the money supply through their branches (24 in the US) which then pass that off to the commercial banks. The money over time gets distrbuted throughout the economy (the velocity of moneyOther interest rates tend to move in accordance with this Fed Funds rate, although not all. There are hundreds of different interest rates, most you have no idea exist (commercial paper rates, prime rates, discount rates, swap rates, repo rates). They move in accordance with supply and demand, the perceived risk and reward of the underlying product, the state of the economy, future expectations, etc. Every interest rate has its own unique way they're calculated, so you have to research each one individually. The Fed rates determine at what cost banks borrow money. In a down economy, the Fed wants to make accessing money easier so they reduce the rate (0% currently). That doesn't mean your credit card rates should change. That's a rate by which a bank makes their money off you (their revenue), so they can adjust it as they see fit - they'll look at their competitors, look at their performance, figure out the demand for the card, how much money can they afford to make or lose by changing the rate, etc.For you, the money you use every day at one point originated from the central bank passed off to the commercial banks. This shouldn't be confused with investment banks, which are a completely separate industry and usually have nothing to do with the average citizen. They're involved with corporate transaction advisory, selling of financial products, and publishing research. Their roles in this can indirectly have an impact on the economy, as has happened in the last 5 years, due to their involvement with consumer activity such as mortgages. This was exacerbated by the repeal of Glass-Steagall, whereby investment banks and commercial banks were re-integrated, making the risk of the investment bank a part of the commercial bank.
Is the federal government role in the banking system helpful to the American economy?
The federal government has the exclusive right to print the money so it can’t help but be involved in the financial sector. That became even more true with the creation of the Federal Reserve bank system almost a century ago.Most laws, but especially financial regulation, are in response to some crisis after the fact. The crash a few years ago had to do with bad mortgages and borrowing, banking functions if not literally banks. A new set of financial regulations was produced. The crash and depression of the 1930’s really changed banking regulation and is probably the biggest success story. e.g. newly created FDIC insurance of failed banks has prevented a repeat of the disaster of the 1930’s economy crash.So, has all that banking regulation actually been helpful? I would say yes, it’s been helpful in preventing a repeat of the mistake prompting the law.
Why are banks important to the economy?
Wow, where to begin. Banks are on the vanguard of economic development in any nation. Banks provide the necessary capital to corporations, small/medium sized businesses, enterepreneurs, etc to drive innovation/investments and get the economy going. If banks did not exist there would be no credit, no place to store capital, no intermediary to move capital, no way to match savers/debtors and a myriad of other extremely important functions. The federal reserve has a myriad of functions some of which include acting as a banking intermediary for banks (eg. getting a check from Citi to Bank of America), acting as a lender of last resort, holding reserves in case of a bank run, managing interest rates, and many others. (This is a watered down explanation) - The Fed by lowering/increasing interest rates affect the availability of credit which influences aggregate demand thus can increase/decrease GDP growth, inflation and employment. This is actually more complex considering the myriad of factors that affect the economy. A simple example. The economy is sputtering (not like 2007 but think of 2001). The Fed lowers the fed funds rate influencing other rates - lowers all interest rates. The lower rates creates incentives for borrowing. Companies borrow and spend. There is more production which in the long run lead to greater income thus greater demand and possibly greater employment. Once again, the economy is substantially more complex than this thus it does not always work as planned.
What is the importance of the tertiary sector in the Indian economy?
India’s services sector is burgeoning which is a sign of an economy on the sustainable growth trajectory. Some proofs of its huge contribution to Indian economy are listed below:India is the only country with whom USA runs a trade deficit in terms of services(intangible goods)57 % of India's GDP is contributed by teritary sector.It has been the cheif driving force of India's growth during recession of 2008–09, which helped India escape it almost unscathed.Talking on the terms of its contribution to the Indian sector-it has been the Augmentation engine which brought India from the state on verge of being bankrupt to World's 3rd largest GDP in PPP terms & economy with highest growth rate in the world.Teritary sector actually caters to the excess income in a person's hand after he is successful in acquiring his basic needs. However it seems sceptical in case of India as Service sector grew in India when we were hardly able to feed our population. The answer to this was that we grew our teritary sector by exporting services to the developed nations with high Personal Disposable Incomes(PDI).Thus instead of being a sector which is created after a country attains a certain income level, Teritary sector in India's scenario has acted as a sector which made it possible for a mickle chunk of India's population to break the mark of Poverty line.Furthermore one must note that due to increasing per capita income in India(which is one of the largest markets of world) sugnificance of teritary sector has augmented on a unprecedented scale. This growth can be attrivuted to below factors:Demand for services such as transport, trade, storage will increase with the development of primary and secondary sectors.Demand for tourism, shopping, private schools, private hospitals, etc. increases with the increase in the level of income.Rapid growth of services sector also benefitted from external demand such as software industry and call centre services.Liberalisation of financial sector provided an environment for faster growth of financial services which further increased teritary sector's ambit.In conclusion i would like to say that teritary sector is probably the most important sector and is primarily responsible for India's growth story and will remain cheif engine for future growth of India.