Banking
🏦 What is a Channel in Banking?
A channel refers to the way customers interact with their bank to conduct transactions or access services. Common banking channels include:
Branches: Face-to-face service at physical locations.
ATMs / Smart ATMs: For cash withdrawals, deposits, transfers, and statements.
Internet Banking: Web portal access via a browser.
Mobile App Banking(goMoney / ANZ App / ANZ Plus App): Banking via smartphone apps.
Phone Banking: Banking via automated systems or voice ID calls.
Banking Agents: Third‑party retail or postal outlets acting as banking service points.
Cards: Debit or credit card transactions through EFTPOS terminals.
🏦 Banking Products & Services
Deposits: Savings, Current, Fixed Deposits (FD), Recurring Deposits (RD)
Loans: Home Loan, Auto Loan, Personal Loan, Business Loan
Cards: Credit Card, Debit Card, Prepaid Card
Accounts: CASA (Current Account Savings Account)
Payments: NEFT, RTGS, IMPS, UPI (India-specific), ACH (US), SEPA (EU)
Digital Banking: Internet banking, mobile banking, wallets
💼 What is Private Banking?
At its core, private banking refers to:
A customized banking experience for wealthy clients, offering exclusive financial services, investment advice, and wealth management.
🧑💼 Who Uses Private Banking?
Private banking is typically available to:
High-Net-Worth Individuals (HNWIs) — people with substantial assets (e.g., over $1M+ investable).
Ultra High-Net-Worth Individuals (UHNWIs) — wealth above $30M+.
Some banks also offer “priority” or “premier” banking tiers with lower entry thresholds.
Commercial banking refers to the business of providing banking services to individuals, small businesses, and corporations for profit.
These banks are for-profit financial institutions that offer a wide range of services primarily focused on managing money and providing credit.
🏦 Key Services of Commercial Banks
Accepting Deposits
Savings accounts
Current (checking) accounts
Fixed deposits
Providing Loans
Personal loans
Business loans
Home and car loans
Credit lines and overdraft facilities
Payment Services
Debit/credit cards
Fund transfers (NEFT, RTGS, UPI, etc.)
Check processing
Foreign Exchange
Currency exchange
International remittances
Trade financing
Wealth Management & Insurance (Optional)
Investment advisory
Insurance products
🏦 What is Retail Banking?
Retail banking provides financial services to individuals, helping them manage money, save, borrow, and make transactions.
It’s what most people think of when they think “bank” — visiting a branch, withdrawing cash from an ATM, or using online banking.
🏛️ Retail Banking at ANZ
ANZ provides a full suite of retail banking services in Australia and New Zealand, including:
Everyday Accounts (e.g., ANZ Access Advantage)
Savings Accounts (e.g., ANZ Online Saver)
Home Loans
Credit Cards
Personal Loans
ANZ Plus (modern mobile-first banking)
Internet Banking & App Services
🏦 What is Corporate Banking?
Corporate Banking (also called business banking or institutional banking) refers to the services that banks provide to businesses, corporations, institutions, and large organizations — rather than individuals.
It’s a specialized division of a bank that caters to the financial needs of companies, from small businesses to multinational corporations.
🏢 Who Uses Corporate Banking?
Small businesses
Large corporations
Government departments or agencies
Educational institutions or hospitals
💼 What is Investment Banking?
Investment Banking is a specialized segment of banking that helps companies, governments, and large institutions raise capital and offers advisory services for mergers, acquisitions (M&A), and other big financial transactions.
Unlike retail or corporate banking, investment banks don’t take deposits or give out personal loans — they work on large-scale financial deals.
🧑💼 Who Uses Investment Banking?
Large public and private companies
Governments issuing bonds or privatizing assets
Private Equity and Venture Capital firms
Institutional investors
📘 What is a Balance Sheet?
A balance sheet is one of the three core financial statements (along with income statement and cash flow statement). It provides a snapshot of a company’s financial position at a specific point in time.
It shows what the company:
Owns (Assets)
Owes (Liabilities)
Assets = What the bank owns or lends out (e.g., loans to customers, investments).
📚 What is a General Ledger?
A General Ledger (GL) is the master accounting record of a company. It contains all financial transactions of a business, grouped by accounts (e.g., cash, sales, expenses, etc.).
It acts as the central repository for all accounting data transferred from sub-ledgers (like Sales Ledger, Purchase Ledger, etc.).
🏷️ Types of Accounts in a General Ledger
The ledger is divided into five main categories:
Assets
Cash, Inventory, Accounts Receivable
Liabilities
Loans, Accounts Payable
Equity
Capital, Retained Earnings
Revenue (Income)
Sales, Interest Earned
Expenses
Rent, Utilities, Salaries
🧾 What is PeopleSoft General Ledger?
PeopleSoft GL is the central repository for all financial transactions. It collects accounting entries from various subsystems (Accounts Payable, Receivables, Asset Management, etc.) and consolidates them for:
Trial balances
Financial statements (Balance Sheet, Income Statement)
Auditing and reporting
⚙️ What Is an Open Banking Accelerator?
An Open Banking Accelerator is a pre-built software toolkit or framework designed to help financial institutions (banks, credit unions, fintechs) implement Open Banking capabilities quickly and securely—without building everything from scratch. It typically includes:
APIs meeting regional regulatory standards (e.g., PSD2 in Europe, UK open banking, Australia’s CDR)
Developer portal, sandbox & production environments
Consent management and client onboarding
OAuth-based authentication and access control
Built-in compliance checks, logging, and security
Tools for API monetization, analytics, and scaling
common banking modules:
✅ 1. Core Banking Module
Central system that manages all basic banking services.
Supports account creation, deposits, withdrawals, interest calculations, etc.
Real-time processing across all branches.
✅ 2. Customer Information Module (CIF)
Maintains a 360-degree view of customer data.
Includes KYC documents, demographics, risk profiling.
Shared across all modules (centralized customer repository).
✅ 3. Deposits Module
Handles savings, current, fixed deposits, recurring deposits.
Interest calculation, maturity, renewal, and lien marking.
✅ 4. Loans & Advances (Lending) Module
Manages retail loans (home, auto, personal) and corporate loans.
Tracks EMI schedules, interest accrual, NPA classification, collateral management.
✅ 5. Payments & Transfers Module
Supports NEFT, RTGS, IMPS, UPI, SWIFT, ACH.
Handles internal and external fund transfers and remittances.
✅ 6. Trade Finance Module
For LC (Letter of Credit), Bank Guarantees, Bills for Collection, Export/Import financing.
Common in corporate/international banking.
✅ 7. Treasury Module
Manages bank's investments, forex, interest rate risk, liquidity.
Supports bond trading, derivatives, and asset-liability management.
✅ 8. General Ledger (GL) / Accounting Module
Central accounting system.
Handles financial transactions, trial balance, profit & loss, balance sheet.
Integrated with PeopleSoft General Ledger (PSGL) in some banks.
✅ 9. Internet & Mobile Banking Module
Customer-facing digital banking.
Enables balance check, funds transfer, service requests, bill payments, etc.
✅ 10. ATM/POS Module
Manages ATM transactions, debit/credit card management, POS systems.
Supports card issuance, blocking, PIN reset, transaction logs.
✅ 11. Risk Management & Compliance Module
Ensures regulatory compliance (RBI, Basel norms, AML, KYC).
Risk rating, fraud detection, credit scoring, and reporting.
✅ 12. CRM (Customer Relationship Management) Module
Tracks customer interactions, complaints, service requests.
Supports lead generation and targeted marketing.
✅ 13. Audit & Reporting Module
Internal and external audit support.
Generates regulatory reports (e.g., RBI returns, statutory reports).
✅ 14. Human Resource Management (HRMS)
Employee data, payroll, leave, recruitment, performance evaluation.
✅ 15. Open Banking / API Banking
Exposes banking functions to third parties securely via APIs.
Enables fintech integration and Banking-as-a-Service (BaaS).
📊 Basic Financial Documents
✅ 1. Balance Sheet
Shows: Company’s financial position at a specific point in time.
Formula:
Sections:
Assets: Current (Cash, Receivables) and Non-current (Property, Equipment)
Liabilities: Current (Payables, Short-term loans) and Long-term (debts)
Equity: Share capital, retained earnings
🔹 Used to assess solvency, liquidity, and financial health.
✅ 2. Profit & Loss Statement (Income Statement)
Shows: Company’s financial performance over a period (monthly, quarterly, yearly).
Key Elements:
Revenue (Sales)
Expenses (COGS, Salaries, Rent, etc.)
Net Profit (or Loss) = Revenue - Expenses
🔹 Used to understand profitability and cost management.
✅ 3. Cash Flow Statement
Shows: Actual cash inflows and outflows during a period.
Divided into:
Operating Activities (main business operations)
Investing Activities (buy/sell assets)
Financing Activities (loans, equity, dividends)
🔹 Shows liquidity position — how much cash the company has.
✅ 4. Trial Balance
Shows: List of all general ledger account balances at a given time.
Used to:
Ensure that total debits = total credits
Prepare the financial statements
🔹 Checks accuracy in accounting entries before finalizing books.
✅ 5. General Ledger (GL)
Definition: Master record of all financial transactions in accounts.
Includes:
Asset, liability, income, expense, equity accounts
Formed from journal entries and forms the basis for Trial Balance
🔹 Used by accountants to summarize and prepare all other financial reports.
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🔐 Key Regulatory Terms
📘 1. KYC (Know Your Customer)
A process to verify the identity of customers.
Ensures prevention of money laundering, fraud, and terrorist financing.
Includes ID proof, address proof, photograph, signature, etc.
📘 2. AML (Anti-Money Laundering)
Laws, policies, and procedures to detect and report suspicious financial activities.
Involves monitoring large or unusual transactions, STRs (Suspicious Transaction Reports).
📘 3. CDD (Customer Due Diligence)
Part of KYC — assessing risk level of a customer.
Types:
Simplified
Basic (Standard)
Enhanced Due Diligence (EDD) for high-risk clients.
📘 4. FATCA (Foreign Account Tax Compliance Act)
US regulation requiring foreign financial institutions to report info about accounts held by US taxpayers.
Promotes global tax compliance.
📘 5. CRS (Common Reporting Standard)
OECD’s global version of FATCA for automatic exchange of financial account information.
Used to combat tax evasion.
📘 6. Basel Norms (Basel I, II, III)
International banking regulations issued by the Basel Committee on Banking Supervision.
Focus on:
Capital Adequacy
Risk Management
Liquidity
📍Example: Basel III introduced Capital Conservation Buffer, Leverage Ratio, LCR (Liquidity Coverage Ratio).
📘 7. CRR (Cash Reserve Ratio) – [India Specific]
Percentage of total deposits that banks must keep with the RBI in cash form.
Used to control liquidity and inflation.
📘 8. SLR (Statutory Liquidity Ratio) – [India Specific]
Portion of deposits banks must maintain in the form of gold, cash, or government securities.
Helps regulate bank credit.
📘 9. NPA (Non-Performing Asset)
A loan where interest or principal is overdue for 90+ days.
Banks must provision for NPAs, which impacts profitability.
📘 10. PCA (Prompt Corrective Action)
A framework by RBI to monitor and control financially weak banks.
Based on capital adequacy, NPA levels, and ROA.
📘 11. STR (Suspicious Transaction Report) / CTR (Cash Transaction Report)
Reports filed by banks to FIU-IND when:
STR: Suspicious or abnormal activity
CTR: Cash transactions > ₹10 lakh in a day
📘 12. GDPR (General Data Protection Regulation)
European Union regulation for protecting customer data privacy.
Impacts all banks operating in or dealing with the EU region.
📘 13. RTGS / NEFT / UPI Regulations
Governed by RBI under Payment and Settlement Systems Act.
Ensure secure, regulated, and timely settlements of funds in India.
📘 14. BCBS (Basel Committee on Banking Supervision)
Sets global banking supervision standards.
Not legally binding but adopted by most central banks.
📘 15. FIU-IND (Financial Intelligence Unit – India)
Government agency responsible for receiving and analyzing STR/CTR reports.
Aids law enforcement in money laundering and financial crime cases.
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