Similterra

Banks and bank services have existed throughout history; it is believed they predate currency and traces of bank records are estimated to have been present in the third millennium B.C. In the ancient world they held grain, cattle and precious metals such as gold and are believed to have carried out their business in temples and palaces as these were the safest places to contain wealth.

The business bank relationship is believed to have begun in ancient Babylon where temple priests granted loans to merchants. It is believed that the first laws in society contained rules for banking and a bank code of conduct. Showing the extent at which banks and society are intertwined.

Ancient Greece took banking further by creating a centralised grain bank network and created credit slips for customers. These slips were used in business and consisted of instructions to bank tellers to perform deposits and withdrawals. This can be seen as a strengthening of the business bank relationship.

The Roman Empire perfected banking; being obsessed with administration, banks took a more recognisable form as increasing amounts of paperwork were involved in transactions. Detailed bank regulations and laws were also created to define the industry. The Romans also created the first bank charges in the form of interest. The business however experienced a downturn with the rise of Christianity as interest charges were seen as immoral; subsequently bank services dwindled in Western Europe until the time of the crusades.

The medieval period saw a revival for the business bank relationship. Trade fairs present in most major European cities began to create bills of exchange where notes were given in exchange for hard currency. These bills were redeemable at other cities and hence eliminated the necessity to carry huge fortunes across country; forming a far safer option for merchants. This need for the transfer of large sums of money was a direct result of the crusades and as the banks redeemed the bills in line with exchange rates and inflation, bank services started to become profitable.

Throughout the later medieval period the Italian bankers of Lombardy and Genoa became the financial powerhouses of the Mediterranean. Their loans allowed business to flourish as overseas trade became a mainstay of any nation’s economy. Italian bankers spread throughout Europe and appeared in many European cities. Although problems did arise when defaulted payments by monarchs caused the bank services to become political issues.

During the beginning of the modern period the business bank relationship was further enhanced. Expeditions to the new world were funded by banks in Spain and Portugal; such journeys became profitable for the bank tellers as the returns became vast after the initial outlay. In Britain, new trade businesses used banks to fund their activities in the new world with tobacco and coffee imports from the Indies being extremely profitable.

Bank services and loans were the backbone of the industrial revolution in Britain. Without the funding that supported the entrepreneurs the improvements to the transport network and creation of evermore complex steam engines would not have been possible. It is thanks to the banking that Britain became the richest nation in the world, the empire was dependent upon loans and the reason it expanded to such a huge extent was the desire to repay these sums of money.

In the modern world global bank services have shrunk the world. Transfers are now instantaneous and banks fund vast projects on a worldwide basis. The profits they gain break records on a regular basis, figures of twenty and thirty billion are not uncommon for the world’s largest banks. These sums make some banks wealthier than nations and subsequently the favour they hold in politics and business is seemingly unassailable.

Bank services have provided financial support for the business world since the beginnings of civilisation; today they hold a position of power as entrenched as many political systems. In many cases bank services have been fundamental in the formation of nations and political systems and have funded the exploration and empire building that has created the world we see today. The close business bank relationship is profitable for both sides, as long as banks are willing to fund entrepreneurial schemes the relationship is set to continue indefinitely.

Bharatbook.com is glad to announce a new report titled “Poland Banking Sector Analysis”.

The new report, “Poland Banking Sector Analysis” that provides extensive research and rational analysis on the banking industry of the European country Poland. This report helps clients in analyzing the opportunities, challenges and drivers critical to the growth of the country’s banking industry and provides the future overview of the industry in terms of banking products. 

The report underlines the factors, which make Poland one of the top three banking industries in Eastern Europe region. Growing economy, with rising credit demand, makes Poland a favorable destination for investment in banking sector. The banking sector of Poland is mainly dominated by foreign-owned institutions that currently account for majority of banking assets. Also, the Polish banking industry is expected to witness further consolidation in future as the industry is anticipated to take an organic route for growth.

Low penetration of banking services makes Poland an attractive destination to capture the market with standard or customized products depending upon the needs of the Polish people. Strong regulatory environment and association support creates a level playing field and equal opportunities for all the players operating in the market.

The report provides detailed overview of the banking industry in Poland by contemplating and analyzing various parameters like assets size, income level etc. It helps clients to understand various products available in Poland banking industry and their future scope.

The forecast given in this report is not based on a complex economic model, but is intended as a rough guide to the direction in which the market is likely to move. The future projection undertaken in this report is done on the basis of the current market scenario, past trends, and rules and regulations laid by National Bank of Poland.

For further information kindly visit: http://www.bharatbook.com/detail.asp?id=71541

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Starting a business can be daunting, with lots of paperwork to get your head around. So, it’s a good idea to open a business bank account to keep your accounts organised, making tax returns and financial enquiries much easier.

A business account will also give you access to valuable advice and support from a business manager that in many cases comes as part and parcel of the account. With many banks offering free business banking to new accounts, it could even save you money although banking charges are likely to factor in at some point.

There are many benefits to opening a business account; many banks offer a free business banking period when you open a new account or switch a business bank account. During this time you won’t be charged for paying in cash or cheques and you will not need to keep a minimum balance in your account. This is ideal for those starting commerce as you can save money and invest it into your business instead.

You may earn credit interest on any balance, which you can reinvest into growing your business. Looking for an account that gives the most interest however is unadvisable; your major concern should be what banking charges will affect your business finances.

When you open the account, you may be allocated a named business manager, who can offer invaluable business advice and support, and also help you to arrange loans or insurance for your business. This service should be utilised as much as possible an experienced advisor is worth their weight in gold. The advice given by business advisors should be heeded at all costs as their experience is an asset that will add to the effectiveness of your business.

You’ll also get a business debit card, which makes it easy to withdraw cash from a cashpoint and pay for items without the need for company cheques. And if you opt for a business credit card, you may be able to enjoy interest-free credit to help your cashflow and make it easy to track your spending. Be careful to ensure spending is limited to business needs only, discipline is required not to mix your business and personal finances.

If you need quick access to additional funds, a business loan or business overdraft could offer a flexible solution. Be sure to study the terms of the loan in detail and fully understand the repayment schedule. When you’re looking for business premises, it is well worth speaking to your business manager who may be able to arrange a commercial mortgage for you.

Most banks offer internet banking, as well as telephone banking, which makes it easy to manage your account. Additional banking charges may apply however so reading the small print is a prerequisite to opening an online account. Some business accounts include access to book-keeping software, business planning tools and business guides, which can be really useful when you’re starting a business.

It’s also worth remembering that having separate personal and business bank accounts makes it easier, and usually cheaper, for you and your accountant to balance your cashbook and ensures that your account is covered by the Business Banking Code.

The separation of personal and business accounts is also vital for tax purposes. Opening a business account also makes ongoing maintenance of your account easier, for example if you want to add multiple signatories at a future date and adds an element of transparency to your business dealings.

The Internet banking model was originally built with a view to merely replace identified brick-&-mortar services and provide an online means of reaching out to the bank. This model was not mature enough for the market as these Internet banking solutions served as mere aggregating mechanisms. Slowly new features like inter-bank local payments, international remittances, communication through secure e-mail with dedicated relationship managers from the bank and exposure of account relationships through online channels were added. Banks then started to use the model as a ‘differentiating’ factor.

Today, the banking business is driven by one mantra – virtually all types and kinds of banking services to be made extendable across channels, including the Internet. With the growth of Internet banking being driven even harder by the retail boom, banks can increasingly rely on new-generation electronic banking solutions built on open architecture, with robust security features, that provide true relationship banking functionality as well as be scalable and flexible to meet the changing demands of the retail customer.

A good example is Singapore which has one of the highest Internet penetration rates worldwide. All major Singaporean banks provide Internet banking platforms and many also provide host-tohost
capabilities to link up to companies’ backoffice operations for file transfers. The authorities in Singapore have been proactive in recognizing the role of the Internet as a delivery channel and have strongly promoted Internet banking.

This paper looks at what Internet banking has been so far and delves into what the future ahead could be like. It also highlights the importance of having solution vendors who move in sync with the market, focusing on building beyond their core competencies.

The Next Wave in Internet Banking

Financial institutions have started to give a serious look at the small & medium enterprises segment due to issues like global economic slowdown and want of better profit. But, there is a need to keep in mind that business scope and legal structure of the firm are criteria that should not to be overlooked while approaching the SMEs. The approach best suited for a bank should be dependent on existing customer profile and the strategic objective behind SME initiative. Some banks view SME banking as a specialized division within the bank. They claim that SME customers have specific needs, demand greater flexibility and need personal touch. However, this could mean higher operating cost and needs higher breakeven volumes. Some other banks consider SME banking as an extension of High Net Worth (HNW) banking. The basic idea is that owners of businesses are retail customers of the bank. On-line SME Banking offering is effectively a toned up version of the Retail Internet Banking offering. A comprehensive offering, an easy to use and secure service, a stable technological platform (downtimes can easily create life-long skeptics!) and marketing push in terms of product demonstrations and incentives to use are critical to its success. The future is bright for the banks who can carefully balance the tread.

This paper highlights approaches to SME banking that banks follow as well as the service expectations from on-line SME offering as it is one of the most efficient methods of delivering banking services and products to the SME segment and banks need to take higher efforts to increase adoption of the same.

Enticing SMEs- The Online Banking Way

Some people are steadfast in their approach to banking and will only bank in a land-based bank that has a secure method of doing business. Other people have been enlightened to the online savings that are available through online banks and are savings lots of money throughout the year on many of their banking needs. These online bankers achieve savings and they know that their money is insured too.

Many online banks allow people to create online savings accounts at first just to give people a chance to form an opinion about the level of service that they receive from the bank. When they see that the new savings account is afforded a higher rate of interest, they begin to feel that there is a possibility for online savings after all at an online banking institution.

The new online banking customers might want to test the banking system to see if how it compares to land-based banks. They know that the advertisements said that they would not have to pay any fees when they accessed the money in the savings accounts through an automatic teller machines and when the online banking customer visited a local bank branch they found out that this advertising was true in all respects.

Some consumers that bank online realize quite a few online savings throughout the year. Some business policies require copies of checks to remain on file for a certain number of years and the businesses had to pay for that opportunity. Through online banking the businesses realized online savings by being able to download copies of all cancelled checks and statements for each month of the year and no fees were charged for this service.

Some online banking customers find online savings by paying all of their bills through the online bill paying networks. Many online banks charge no fees for this service but the customer will realize online savings by not having to pay late fees anymore. This methodical method of payment will also help online banking customers to improve their credit rating and receive offers for lower interest rates on home mortgages and credit cards.

High yields offered on savings accounts, checking accounts and certificate of deposit investments are online savings that many consumers choose to grab and enjoy the second that they see them. Some families get organized with all of their financial needs and will only do their banking online. With online banking a very ready source of financial stability, people find that it is easier to save money banking online by setting up a bill paying option that allows them to get paid first.

Looking for an offshore bank account? There is no need to use the many middleman websites you will find via a search engine. Most of these are *bogus*, even the slick-looking ones. More and more banks are offering offshore bank accounts direct. Just get a list of banks in the country you’re interested in, and go to their web sites.

Opening an offshore bank account is like opening one in your high street; meet their criteria, and you’re in. The only difference is you’re not there in person.

The first thing is to find out whether they will accept citizens or residents of your country. For example, Swiss banks tend not to want US customers; they don’t want the hassle from the IRS.

You will need to prove your identity, and the legal existence of your company, if you wish to open an account for it.

If applying by mail, DO NOT PART WITH ORIGINAL DOCUMENTS. Get copies notarised by a notary public. Originals can be used for fraud or identity theft. Or they can get lost.

A Notary Public is a public officer commissioned by the State to perform notarial acts. A Notary is an impartial witness. The notary is empowered to issue an apostille.

Apostille – Is a method of certifying a document for use in another country pursuant to the 1961 Hague Convention. With this certification by apostille, a document is entitled to recognition in the country of intended use, and no certification or legalization by the embassy or consulate of the foreign country where the document is to be used is required.

In practice this means you provide evidence to this man that you are who you say you are, and/or that your company is what you say it is. You take an oath on the Bible. That’s right, it’s not a joke.

Due diligence: Banks need to show they have checked who their customers are, and how they came by their money.

Passport – If you apply by post a notarised copy is needed;

Information about yourself – name, date of birth, address, phone number etc.

Your economic background – documents showing how you earn your money (work contract, bank statement, tax return, company documents);

Origin of your deposits – documents showing how you earned them. If you sell a house, proof of the sale, a copy of the estate agent’s listing, and so on;

Information about your deposits – how much you plan to deposit, and what you plan to do with the money once you’ve banked it.

If opening a company account, you send an apostilled copy of the certificate of incorporation to the bank providing your account, along with evidence of your identity, an application form, and any other documents they ask for.

If you want to get an offshore bank account, *consider visiting the bank in person*. If you can, travel to the country in question, and open a bank account there. You probably live near one tax haven at least. This especially applies if you are planning to deposit large sums; find out who you’re dealing with!

NOTES:

1. Don’t pay a middleman to open a bank account for you. See above.

2. Do not use services which offer bank accounts in Eastern European countries.

You are likely to be cheated, possibly by the bank itself. Avoid Latvia!

3. Avoid web sites where:

The business address is a P.O. Box, or a ‘Suite’;
The site is on a free web host;
The site is badly translated into English;
You have the sense you are dealing with Africans or Eastern Europeans;
The site has not been updated recently e.g. the Copyright reads 2001;
They’ve only been running for a few years;
They offer a range of dubious products – second passports, citizenships, anonymous debit cards;
You cannot pay via credit card – it’s much harder to get refunds on banker’s drafts, Western Union and e-Gold etc;
They require you sign a confidentiality agreement, or you have the sense you are entering quasi-legal or illegal territory.

Bogus offshore banking sites can threaten to report you to your tax authority if you question their methods. It’s an old con trick; get the mark involved in something illegal, then he can’t go to the authorities.

Offshore bank accounts and company formations are just like their onshore equivalents; there’s no big mystery about them. If you want a company formation, contact a local registration agent, who speaks English, in the country of registration. Then use another local agent to check what the first one’s done.

Open your bank account yourself.

One last thing: *don’t think that because your bank account and company are offshore you can do business in your home country, and/or with fellow residents, and avoid taxes there*.

You’ll find plenty of websites that’ll purport to help you, right up until the time you get a small brown envelope from your country’s tax inspectors, inviting you in for a little chat.

Core banking replacement has, for long, been considered a strict no-no by banks. Established comfort level with existing technologies and processes, relatively comfortable margins that provided the luxury of overlooking operational inefficiencies, and finally, the fear of the unknown, have all ensured that banks steered clear of this subject. But the current competitive environment with increasingly demanding customers is forcing banks to take a reality check on their technology environment and ensure that their IT strategy is aligned to their business objectives. And core banking replacement is often the only solution to their problems. However, replacement of core banking solutions be it for large or small banks, global or regional is akin to a heart transplant. This can be one of the greatest challenge for any institution, which can either result in the bankleapfrogging to a high degree of differentiationand an enriched customer value proposition, or it can create considerable risks for the bank if the transition is not managed properly.

Successful banks are those that understand the potential of new technologies. They align themselves to fully leverage the powers of these technologies by focusing on the adaptive changes that make the technology transformation process successful…. The current competitive environment with increasingly demanding customers is forcing banks to take a reality check on the technology environment and ensure that their IT strategy is aligned to their business objectives. And core banking replacement is often the only solution.

Herein banks need to be mindful of challenges like vendor capabilities and dependency on legacy applications which are generally associated with core banking deployments and replacements. These challenges once understood and mitigated properly can result in the bank leapfrogging to a high degree of differentiation and providing an enriched customer value proposition. On the other hand, it can also create considerable risks for the bank if the transition is not managed properly.

This paper details the key factors banks need to focus on, to enable them to make the core banking transformation a successful experience.

Key Challenges in Core Banking Replacement

Banking charges are now integral to our business and personal accounts; recently however the banking industry has been facing court cases on the fairness of some bank charges.

There are many in the business world that believe the banking charges put in place by many banks are unrepresentative and therefore should be scrapped. One argument has highlighted the overdraft as vital to many people’s personal and business banking needs and to charge unfairly for it is not just immoral but bordering upon illegal.

A High Court hearing is looking into allegations that the banking industry is acting illegally and has come to the conclusion that providing customers with credit was a substantial element to business and personal account services.

The whole debit and cheque cashing business would come to a halt without account credit and hence the consumer economy would suffer greatly. The banks argue that if they did not honour customer debit payments and then charge accordingly, purchasing would take a backward step to hard currency payments once again.

This is the fundamental argument of the banking industry; they believe these credit charges are perfectly legal as they are classified as banking fees rather than penalties. It may seem an argument based purely upon the different use of language, but when lawyers are concerned arguing vocabulary differences may make or break a case.

The Office of Fair Trading (OFT) has waded into the case and demanded that business and personal account charges be reigned in, the High Court however has come to another conclusion.

The High Court has concluded that the arguments on both sides depend upon one factor. This factor is the contract signed when opening a business or personal account. The High Court has stated that as long as the payments are for services within the contractual agreement and not penalties for breach of a contract, the banking industry cannot be held accountable, and subsequently should not have to refund charges.

The decision will affect personal account holders more so than those with business accounts. The outcome of the ongoing investigation is set to revolutionise the current account market within the UK; both sides, the Banking industry and the OFT are standing firm on their positions and hence the hearing is likely to go on for some time.

It has originally been scheduled to last for eight days but this figure is wholly unrealistic. The huge volume of evidence will delay the case further, while a decision is expected around Easter time the appeal process is likely to continue for at least another year.

Some personal and account holders have actually been recorded as saying that they are actually contented with the current system of charges. Only being charged for being in the red is seen by many as ideal; overdraft charges can be viewed as payment for an entire collection of services provided by the banking industry not as penalties for entering the red.

This can however be seen as a bi-polar argument as there will always be a split of account holders in credit and in their overdrafts. For those in credit, paying fees for going overdrawn is not an issue whereas those who are constantly on the subsistence level will see overdraft charges as unfair.

Depending upon which argument the High court decides to follow will have major repercussions. If the OFT’s argument is upheld the banking industry will be forced to refund billions of pounds worth of penalty charges. This may seem a positive for consumers but this outcome is unlikely to be of financial gain for account holders. If banks are forced to repay charges it will surely result in increased contractual charges and the end of free banking services.

Tier 1 banks are taking the lead and embarking on a total overhaul of their core processing platforms. The verdict – new age core systems are leaving an indelible imprint on the banking landscape…, at least to the extent of gaining acceptance and engulfing few legacy systems in its wake. This article seeks to highlight some of the trends in the core banking space and what the next year holds out for the banking industry. In the near future one would see a complete confluence in the paths of banks and independent software vendors through the role of core banking systems. This shall be done in the quest to redefine their very existence, and for banks to survive and flourish in an intensely competitive and globalized landscape. There is a focus on factors that will have attained considerable significance for contemporary banks and will be the key drivers in selecting the platform that will power banks into the next orbit and beyond.

This article seeks to highlight some of the trends in the core banking space and what 2006 holds out for banks and ISVs, as well as some of the critical success factors that banks need to be mindful of, in order to derive the maximum out of their core banking transformation initiatives.

The paper also draws attention to the strategic challenges before the bank’s stakeholders as well as some of the critical success factors that banks need to be mindful of in order to derive the maximum out of their core banking transformation initiatives.

The Core Banking Juggernaut Rolls On