Commercial banking, also called commercial banking or investment banking, refers to banking products and procedures specially designed for companies, institutions, and at times governments. Commercial banks provide credit products such as checking and savings accounts, mortgage loans, international trade, corporate bonds, treasury bonds, commodities trading, and commodity market products. They also open savings and money accounts for businesses and individuals. Most importantly, they undertake banking operations for corporate and investment purposes. Apart from these services commercial banks perform other financial functions such as managing inter-bank transactions, credit portfolios, offering banking products to clients, and dealing with regulatory issues.
Before we move further, let us take a quick look at some of the banking products most often offered by commercial banks. Checkbook Accounts are designed to keep track of expenses for a company’s cash flow. This includes cash transferred from one account to another, checks drawn on the bank, payments made, and any other transaction that require conversion from one currency to another. The checkbook is an ideal tool for businesses because it helps them manage their cash flow. Commercial bank checkbook accounts have a variety of features such as date stamp, dollar amount, billing cycle, check number, paper money back, multi-dollar check, paper trail, and more.
Savings Accounts is using to hold checking and savings balances. Most banks provide online banking products such as checking accounts and savings accounts. The most common checking account is the basic checking account that allows you to manage your daily transactions and allows you to make purchases without writing checks. Savings account allows you to invest your money with the goal of growing it through interest or saving it for a specific time.
One important feature of banking products offered by commercial banks is insurance products. Insurance products include lines of credit, life, annuities, health, home, and disability insurance products. These insurance products are meant to protect and promote the financial health of business owners. Some insurance products are provided through referral programs in which referrals to different insurance companies are required in order to receive discounts. Other insurance products are purchased on an individual basis.
Another important feature of banking products offered by commercial banking institutions is travel management services. These services are meant to ensure that customers can get to their banking needs when they need them. Some services include travel advisories, travel mileage calculator, trip planner, car rental insurance, and luggage insurance among others. Commercial banking services also provide payment methods for cash, traveler’s checks, and debit cards among other options. These payment methods are used by customers to facilitate smooth banking transactions.
One type of banking products that you might find in a commercial banking institution is business checking accounts. Business checking accounts are used by businesses as an alternative to regular checking accounts. Business checking accounts provide the business owner with the ability to meet the expenses and requirements of day to day banking needs. Some banks that provide these banking products also provide business credit cards. A business credit card allows a business owner to purchase goods from selected business outlets using credit cards.
In addition, commercial banking products offered by some banks include services designed to promote business sales and growth. One such service is commercial banking credit cards that allow business owners to make purchases without having to use credit cards. Business credit cards are usually offered by banks that provide these special banking products.
Other services offered in commercial banking products are bill payment processing, automatic bill remittance, pay pal payment processing, electronic banking, and business loan processing among many others. A commercial banking bank may also offer other special services including international money transfers and web based banking products. There are different types of cards and banking products available depending on the type of services offered. The different types of cards are: credit cards, debit cards, electronic check cards, travelers’ checks, business credit cards, secured debit cards, personal debit cards, cell phones, pagers, ATM cards, and ATM cash advances among many others.