Universal Banking


 
 
Concept Explanation
 

Universal Banking

Universal Banking: Universal banking means that Financial Institutions (Fla) and banks are allowed to undertake all kinds of activity of banking, financing and related businesses. Universal bank is a financial supermarket which provides all financial products under one roof. Apart from savings and loans, universal banks provide services such as investing in securities, credit cards, project finance, remittances, payment systems, project counseling, merchant banking, Forex operations, insurance and so on. Universal banking has the following advantages:

  • Economies of scale that result in greater economic efficiency in the form of lower cost, higher output and better products
  • Increased diversions and profitability
  • Better resource utilisation
  • Brand name leverage
  • Existing clientele leverage
  • Value added services
  • "One-stop shopping" saving a lot of transaction costs
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