Universal Banking Products and Opportunities | JAIIB PPB

May 26, 2021
universal banking jaiib

The offering of all types of financial products by banks is referred as Universal Banking. Various products offered by banks are banking products, Mutual Funds, Insurance Products, Capital Market, Commodity Market services, Merchant banking, Advisory services and many more.

Universal Banking was started in India in 2000 after Government of India amended the Banking Regulation Act to allow to banks to participate in insurance business with or without risk participation. Consequently, banks started their own Joint Venture insurance companies or arranged corporate tie-ups with insurance companies, which is also referred as Bancassurance model.

Universal Banking Benefits

  • Benefit to Banks: Universal banking allows banks to cross-sell multiple products to their customers and thus open prospects for earning fee-based and non-fee based income to banks. The customer is also benefited
  • Benefit to Customers: The customer is also benefited as he can avail multiple products at one place at ease, lower cost and enhanced service experience

Universal Banking Products

Some of the products offered by banks under Universal Banking are:

  • Deposit Products
  • Retail And Business Loans
  • Demat Services
  • E-Broking Services
  • Portfolio Investment Schemes
  • Sale Of Gold Coins
  • Insurance Products
  • Mutual Funds
  • Co-Financing Arrangement with DFIs like NABARD and SIDBI
  • Infrastructure Finance

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