Commercial transactions made by a bank daily are the operational work. Banks perform different jobs, such as depositing money, lending it, mortgaging property, investing money, issuing debit/credit cards, debiting money, transferring money, etc. All this is within the operational work in a bank.
Banking is basically accepting deposits from the public for the purpose of lending. All banking operations revolve around this. RBI regulates banks to ensure the security of public funds. Hence this regulatory regime that includes the legal blocking of funds and the mechanism of interest control. Simply put, the work done daily is the daily operational work in a bank.
Introduction to Banking Operations
A bank is divided into several departments. The most common are ATMs, accounting and loans. Larger banks may also have a trust or foreign exchange department.
Many banks call their accounting department “Operations” now. Then, the Operations Manager would be what used to be called Head Bookkeeper. This section of the bank deals primarily with handling all bank transactions on the business day, testing them and making sure that the entire bank is in the balance every day. Very limited interaction with the client.
Types Of Banking Operations
The operations in the banking sector are a department reserved to address and provide direct and indirect services of the bank to its numerous clients.
- operations that bank does daily
Banking operations like any other company are established to carry out all daily bank transactions. Banking Operations are as follows:
- account opening and tracking details provided by the bank’s client.
- processing of credit facilities requested by the bank’s client and guarantee creditworthiness.
- bank instrument processing
- payments of all receipts on-demand
- credit of income presentations in customer account
- domestic and foreign funds transfer processing
- account closure upon customer request
- acceptance of customer valuables
- proper record of documents of the bank’s various transactions, etc.
- How Does CFA assist Banks in Banking Operations?
A quick look at the curriculum for the CFA program will tell you that you understand:
- Economy (supposedly more emphasis on macroeconomics than micro)
- Financial accounting / Reports / Analysis (regulations and compliance)
- Basic quantitative techniques (which are somehow related to the preliminary concepts of Operations Management)
- Corporate finance (business and project financing)
- Investment/portfolio management (advice and asset management)
- Capital valuations
- Derivatives and risk management (treasury operations)
- Alternative investment strategies, behavioral finance, markets
The Banking Operations team is responsible for the processing and settlement of all financial transactions made at an investment bank or investment management company. The operations division provides support to customer-oriented departments, such as commerce, corporate finance, and corporate banking. The BSE Institute’s Investment Banking Certification Program aims to provide real-time knowledge and parenting skills to Investment Banking; allowing participants to make informed and effective decisions in the areas of mergers and acquisitions, IPO and valuation, etc.