BANKING IS NOW NOT A MORE ORGANIZATION FOR SAVING MONEY BUT A DEVICE TO EXPLORE AND SPREAD THE DIGITAL COMMUNICATION IN PUBLIC SPHERE

 INTRODUCTION

Bank:

The term Bank is derivative from the French word Banco which means a Benchor Money exchange table. In past days, European money lender or money changers used to display (confirm) coins of different countries in big heaps (number) on benches or tables for the intention of lending or exchanging. A Bank is a financial institution which deals with deposits and advances and other related services. It receives money from those who want to save in the form of deposits and it lends money to those who need it. Oxford Dictionary defines a Bank as “an establishment for custody of money, which it pays out on customer’s order.”

Characteristics of Bank:

 Bank is a financial organization which deals with other people’s money given by depositors.

• A Bank may be a person, firm or a company. A banking company means a company which is in the business of banking.
• A Bank accepts money from the people in the form of deposits which are usually repayable on demand or after the expire of a fixed time. It gives security to the deposits of its customers. It also acts as a curator of funds of its customers.
• A Bank lends out money in the form of loans to those who require it for different purposes.
• A Bank provides easy payment and withdrawal facility to its customers in the form of cheques and drafts; it also brings Bank money in circulation. This money is in the form of cheques, drafts, etc.
• A Bank provides various type banking services to its customers. They include general utility services and agency services.
• A Bank is a profit seeking organization having service oriented approach.

Banking: 

“The modern Banking system manufactures money out of nothing. The process is perhaps, the most astounding piece of sleight of hand that was ever invented. Banks can in fact inflate, mint and un-mint the modern ledger-entry currency[1].”

When the total activities done by a Bank is call banking. The meaning of this term day by day goes broader & broader. In the era of globalization banking sector covers a vast area. Digital communication happens every moment throughout modern technology. So it opens the doors of digital communication & online transactions.

Earlier Banking activities:

In the previous period of time Bank’s activities are very small. The Banks activities only were the place of saving and lending money. It was the more organization for saving money securely. People come to the Bank for safeguard their money or give somebody the use of money for business. No digitalization concept was there or other source of communication happens.

Products of Bank:

• Checking account
• Savings account
• Money market account
• Certificate of deposit (CD)
• Individual retirement account (IRA)
• Credit card
• Debit card
• Mortgage
• Home equity loan
• Mutual fund
• Personal loan

Digital Communication: 

Digital communication is a modern concept. That’s means communicate throughout digital interface using modern technology. Without physical appearance communicate with a people. To communicate with the mass people it’s a very useful and fast way to send all form of necessary information and messages.

Size of Global Banking industry:

Assets of the biggest 1,000 banks in the world grew by 6.8% in the 2008/2009 financial year to a record $96.4 trillion while profits or revenue declined by 85% to $115bn. enlargement in assets in adverse market situation was largely a result of recapitalization. EU Banks held the biggest share of the full amount, 56% in 2008/2009, down from 61% in the before year. Asian Banks’ share enlarged from 12% to 14% during the year, while the share of US Banks increased from 11% to 13%. Fee revenue generated by global investment banking totaled $66.3bn in 2009, up 12% on the previous year.

The United States has the most Banks in the world in terms of institutions (7,085 at the end of 2008) and probably branches (82,000). This is an indicator of the geography and regulatory structure of the USA, resulting in a huge number of small to medium-sized institutions in its banking system. As of Nov 2009, China’s top 4 banks have in excess of 67,000 branches with an additional 140 smaller Banks with an undetermined number of branches. Japan had 129 Banks and 12,000 branches. In 2004, Germany, France, and Italy every one had additional than 30,000 branches—more than double the 15,000 branches in the UK.

BANKING AS A DEVICE TO EXPLORE & SPREAD THE DIGITAL COMMUNICATION IN PUBLIC SPHERE

Banking as a device to explore and spread the digital communication in public sphere:

The Banking activities are not limited by only saving money and giving loan. Now a Bank does a lot of work for providing service in spreading digital communication.

E Business:  

Now E business is broadening out in a very fast manner. People are capable of run their business over internet and grab a big market. But to inter in the global world or E business world it’s mandatory to have a bank account. Banks give us the opportunity to inter into the global internet market through their digital communication system. We be capable of communicate with customers all over the world through E business[2].

Credit card:

Any card that may be used repeatedly to borrow money or buy products & services on credit issued by Banks, savings & loans, retail stores, & other business. A person can communicate digitally with his Bank through credit card. In the place of shopping money transaction goes digitally through automation. It also records dissimilar transactions for a certain period for better identify with past transaction[3] history.

Age verification:

It is also an essential communication criterion[4]. To verify age it was very vital to give a physical interview. But now a day Bank makes this process very simple for us. To verify age for any kind of online verification modern banking procedure digitally contact with them and communicate with proper information.

Mobile Banking:

Now mobile Banking is very popular among those areas where Bank branches are not that much close at hand. People can do all the essential banking procedure throughout their mobile with suitable security. Checking account balance, money transfer etc. can be done throughout mobile Banking. This mobile Banking is now available for all or individual communication from everywhere. We know that now the mobile marketplace continues to spread out, mobile banking is set to become a more fashionable & popular option for Canadians. While online banking has and continues to be a suitable option, Canadians want easy access to their money at any time, wherever they are,”

Dutch-Bangla Bank Limited (DBBL) first time introduced with the mobile banking service, intensifying the banking service from cities to remote areas. Bangladesh Bank Governor Atiur Rahman inaugurated the service in July, 2011 by depositing Tk 2,000 and withdrawing Tk 1,500 through Banglalink and Citycell mobile networks in Motijheel area. Bangladesh Bank has already permitted 10 banks to initiate mobile Banking. Of them DBBL kicked off first.

“Mobile banking is an alternative to the traditional banking through which banking service can be reached at the doorsteps of the deprived[5] section of the society,”

Atiur Rahman said in the course of mobile banking a variety of banking services including depositing and withdrawing money, payment of utility bills and reaching remittance[6] to the recipient would be probable. By going to the DBBL-approved the mobile company Citycell and Banglalink agents throughout the country, the subscribers can open an account provided they confirm the necessary papers and pay a fee of Tk 10. For use the banking service, subscribers must own a cell phone from any provider. The subscribers get a four-digit PIN from the Bankers. The subscribers can use a number of banking services, as well as depositing and withdrawing money, through using the PIN while maintaining account security. Customers can hand over cash to agents in the bank’s network, and agents can synchronize the transaction from their mobile phones, helping account holders securely complete banking tasks by using their PINs. As a result customers can deposit or withdraw money up to five times for every day, up to Tk 5,000 per day. One percent of the transaction account or Tk 5, whichever is greater, will be deduct as a cash-in charge. The charge for cash-out is 2 percent of the transaction amount or Tk 10, whichever is greater.

Bill paying:

Today we can pay different kind of bill as like electricity bill or Gas bill through online Banking procedure. We have no need to go individually & no need to wait for paying bill or waiting line.  

Internet payment:

Today we are enjoying online services through modern Banking activities. We are visiting different store, buy auction, and sell without physical appearance. Banks help us for online payment or any kind of money transaction.

Dutch Bangla Bank Ltd. announced on 3 June 2010, to allow internet payments system. Using their Internet Payment Gateway merchants will be capable to charge their customers’ Visa, Masters, DBBL Nexus and Maestro cards. It is going to be revolutionizing the [e-commerce] in Bangladesh!

Any Visa/MasterCard cardholder is able to use their cards to pay at a number of E-Merchants[7] in opposition to their purchase of products. They can also pay DESCO electricity bills. DBBL is working with airlines, railways, utility companies, educational institutions, & stock exchanges for facilitating buy of tickets, payment of bills/fees & IPO subscription throughout the Internet Payment Gateway. This is also working for make an interface with PayPal[8]. Once the whole thing is in operation, it will change the payment mechanism in Bangladesh & will diminish public sufferings & tension.

Website of the Bank:

Now websites of the Banks are also a big cause of communication. Through website the Bank authority can communicate with different official information straightforwardly with the mass community. On the other hand general people also can provide their observation or comments as well as complains & suggestions there. They can also perform social responsiveness campaign throughout their website.

Social Work:

Social responsibility has to all kind of organization. Bank can also do a lot of social work throughout digital communication. By the ATM both they can flash various types of social responsiveness messages. Banks can give social messages or any necessary information in the mobile after finishing a transaction. So this approach can be an extensive way of digital communication.

For a seller providing goods or services online, it becomes inevitable to have a safe, secure and a reliable payment method, which is easily accessible to his customers. With the constant growth and development of the financial industry, almost all financial institutions are now offering merchant accounts to business owners

Social Channels of Banks:

Banks offer many different social channels to access their banking & other services:

• Automated Teller Machines
• A branch is a retail location
• Call center
• Mail: most accept check deposits via mail and use mail and use mail to communication to their customers, e.g. by sending out statements
• Mobile banking is a method of using one’s mobile phone to conduct banking transactions
• Online banking is a term used for performing transactions, payments etc. over the Internet.
• Relationship Managers, mostly for private banking or business banking, often visiting customers at their homes or businesses
• Telephone banking is a service which allows its customers to perform transaction over the telephone with automated attendant or when requested with telephone operator.
• Video banking is a term used for performing banking transactions or professional banking consultations via a remote video and audio connection. Video banking can be performed via purpose built banking transaction machines (similar to an Automated teller machine), or via a video conference enabled bank branch Clarification.
  

Globalization in the Banking industry:

In present time there have been massive reductions to the barriers of global competition in the banking industry. Rises in telecommunications & other financial technologies, such as Bloomberg, have allowed Banks to expand their reach all over the world, since they no longer have to be close to customers to handle both their finances and their risk. The expansion in cross-border activities has also enlarged the demand for Banks that can make available various services across borders to different nationalities. However, in spite of these diminutions in barriers and growth in cross-border activities, the banking industry is no where near as globalize as some other industries. In the USA, for instance, very a small number of Banks even worry about the Regal-Neal Act, which promotes more proficient interstate banking. In the vast majority of nations around globe the market share for foreign owned Banks is presently less than a tenth of all market shares for banks in a particular nation. One reason the banking industry has not been fully globalize is that it is more suitable to have local Banks provide loans to small business and individuals. On the other hand for big corporations, it is not as essential in what nation the bank is in, since the corporation’s financial information is available around the globe.

CONCLUSION

 Conclusion:

Now we can see that the total conception of banking system has been changed everywhere or over time. So we can say a bank is a complete financial or economic organization which maintains a lot of activities. The word becomes global. So, it is necessity of global communication is very high. In this situation Banking sectors are also come forward & open a lot of doors of digital communication. Now we can accomplish various type or lot of activities thorough our Bank account. Creating social consciousness & general pronouncement can be possible with the help of modern Banking system. E-Business, credit card, online payment, ATM booths, mobile banking is some of the examples of digital communicationprocedure under the blessings of modern Banking.

BIBLIOGRAPHY

[1] The statement presented by Bob Hope (1903 – 2003). Retrieved from http://www.quotationspage.com/subjects/banks/

 [2] Major L L B Angus. Famous Quotations on Banking. Retrieved from http://www.themoneymasters.com/the-money-masters/famous-quotations-on-banking/ accessed on 3.12.2011

 [3] Credit card, Investors world.com. Retrieved from http://www.investorwords.com/1199/credit_card.html. Accessed on 3.12.2011.

[4] The statement said Peter Aceto, President and CEO at ING DIRECT Canada. Retrieved from http://www.digitalcommunications.ca/wireless-news/story.asp?id=3344

[5] Atiur Rahman, The central Bank Governor of Bangladesh in an inaugural press conference. Retrieved from http://www.bankinfobd.com/blog/dbbl-kick-starts-mobile-banking accessed on 3.12.2011

 [6] DBBL introduced internet payment. Retrieved from http://hungrycoder.xenexbd.com/general/dbbl-introduced-internet-payments-in-bangladesh.html