How effective are the new financial products for commercial banks

1. How effective are the new financial products for commercial banks? New financial products are often known as the emergence of banking instruments in the developed financial markets. Today in the huge financial market, the existence of financial products only improves the resource allocation and supports longer term growth prospects. Whereas new financial products, reduces the growth volatility and allows organizations to have a flexible financial structure. And also provide facilitates for Individuals to have a smoother transaction with the new financial products. 1.GIRO Transfer GIRO transfer is one of the latest financial product that helps you to pay regular bills. It allows the billing vendor to debit cash from your designated bank account to pay the bills. Once you are authorized for the GIRO transfer, deductions are made automatically at every billing due date. To set up a GIRO transfer, you need to authorize your dedicated bank account to allow the vendor to deduct the amount. Anyone can easily set up the GIRO transfer once it is approved by the bank and the billing vendors. No further action is needed once it is approved by the bank, only thing you should ensure is whether there is sufficient fund in your account to pay or not. This product is not helpful for the customers, it is more beneficial for commercial banks by having more investments on funds. Advantages include: Instant access to your funds. No need of paper cheque that can be lost, stolen or forgotten. Payments made electronically are less expensive for payer. 2.Stored Valued Facility(SVF):

2. Stored valued facility is often called as prepaid instruments that can be used for the payments of goods and services up to its stored value. The person who wishes to use an SVF product then he need to purchase certain stored value. This stored value amount is paid in advance to the stored value holder of a SVF. The stored value facility can be provided with different forms, such as smart cards, magnetic strip cards, paper vouchers, and internet accounts. In this product commercial banks get more income by charging application fees, penalty charges and initial investment on stored value. There are two types of stored value facilities. Single purpose SVF: This facility can only be used to pay for goods and services provided by its product issuer. Multi Purpose SVF: This facility can be used to pay for goods and services provided by its product issuer and other parties. 3.Easy Card This is one of the most important and secured among all the financial products. The main purpose of this product is to facilitate the card holder to make payment for their daily transactions with the easy card. It is highly personalized with photography of the card holder printed on the card and contains loc graphic security features. It is operated with a current account and serviceable in any branch throughout the country. In this product, commercial banks make more benefit from charging borrowers interest and with the penalty charges. 4.Money Changers Money changing provides the facility to exchange money denominated in different countries. Exchange rates depend on the market conditions and the money-changers cost of funds. In money changers financial product, most banks have investment divisions that often function as service brokerages. Tips to choose your money-changers.

3. Do not deal with unlicensed money changers. Choose money-changers that have installed proper security system to provide a safe and secure environment. Ensure yourself by receiving a proper receipt as proof of transaction in case of any disputes. 5.ePurse An electronic purse or ePurse serves as an alternative to cash and other payment instruments. It facilitates for any individuals or organizations to carry money conveniently from one location to other for settlements of bills and other transactions without physical cash, cheques or draft. This card is loaded with stored value and secured with a personal identification number of the card holders. For More Details Contact Us : Address: 77 Water Street, 8th Floor, Manhattan, New York, 10005 Phone: 888 530 1130 Website: http://www.b2bmarketingpartners.com/