Factors that a Banker/Bank Considers While Approving the Loan

The banking industry is known to many as the most reliable institution for fetching loans for various personal and professional financial needs. A loan is temporary provision of money usually at interest which has to be paid in a designated amount of time. While the job oriented banking courses in India do provide all the important educational aspects of banking, they also give some special insights about the entire loan processing and approval process as this department handles quite a lot of arduous tasks which include the screening of the borrowers, the documents furnished and even the credentials with regard to timely payment. Let’s discuss them all in detail:

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  • Credit history- As a professional with completed banking training courses, it becomes extremely important to check the credit history as it is indicative of your future repayment behavior such as the punctuality in repaying the loans. The longer the delay, the lower the score will be. Also, credit card score should also be maintained with no default in repayment. Generally, a credit score between 700 and 800 is positive whereas the credit score of less than 300 will increase the likelihood of your application being rejected.
  • Age- The age of a loan applicant is directly related to his loan getting approved. Generally, the applicant in the age group of 20’s and 30’s with a job or business of their own stand a higher chance for loan approval since they are financially stable and also have the potential to climb up the corporate ladder.
  • Income- The income is very much a reflection of your repayment capacity. Banks assess the income capacity in the backdrop of existing debt obligations, dependents, source, and duration. In this context, one of the many things the bank checks is sufficient surplus after EMI payments. If this is found wanting, the bank infers that you’re spread far too thin and likely to default. However, if the ratio is five times and above, the bank will consider you financially healthy. To strengthen your eligibility, they can also show additional sources of income, such as your spouse’s salary
  • Repayment: The banking professionals must check whether the eligible person is choosing a shorter repayment period as it stands a better chance of getting the loan approved. Several banks favor applications for a repayment period of up to five years. As the repayment period increases in five-year slabs – 10, 15, 20, and 25 years – the score reduces. So, keeping it short is the mantra in seeking that approval from a bank for a loan.
  • Margin money- This is one of the more crucial factor that the banking professionals finishing the short term banking courses in Delhi need to be absolutely sure about. Generally, banks are willing to fund up to 80% of the cost of purpose of the loan and expect the borrower to arrange for the balance. Moreover, the banking professionals also need to see if the borrower has a good existing relationship with the particular branch of the bank.

Artificial Intelligence is Set to Change the Banking Industry

All the aspirants who are going through the process of making a career out of banking with the banking courses in Delhi after graduation should be aware of the fact that the banking industry is changing and rapidly moving toward technologies like Artificial Intelligence. There are some banks who have already tried AI and then those who are now trying to implement it in their systems to figure out what AI can do. Currently, the focus of the financial institutions is on the user experience rather than the bottom line.

Artificial Intelligence has enabled computer systems to perform tasks that require human intervention. Machine Learning is a key building block of Artificial Intelligence and it helps in making choices that machines cannot without the help of a human being. The banking industry is very sensitive in such cases which results in more severe and long-term loss of credibility of the company providing the financial services. Some of the areas where AI is proving to be extremely useful are:

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Customer Service

AI technology has transformed the customer experience into a hassle free affair by providing interactive solutions. Previously, the customers were left to navigate through several pages on the bank’s website but now with the AI a simple conversation in a chat environment does majority of the job. The convenience and time-saving features of these systems have made the customers stick to the services by banks. The most important part is that AI can be available at any time at any place when the customers might need it the most. Artificial intelligence in mobile banking is serving the customers efficiently and effectively which then allows the staff to spend more time with the customer to understand their need for financial services better.

Cyber Security

The utmost attention is given to e-commerce and cyber-security issues while developing AI for banking. There are systems which can detect any kind of anomaly or irregularity in real-time to identify and eradicate fraudulent cases in commerce including online and in-person banking. The customer is rapidly alerted about such activity. The service also assists financial institutions and payment providers in monitoring and protecting financial activity.

Trading and Stock Investments

AI of banking in most probable circumstances will be used for ‘large algorithmic trading’ which uses the large volumes of high-velocity data to overcome the competition and provide value to customers. AI is especially useful in high-frequency trading and ultra-fast trade execution where a robot has an advantage over the human trading.

With such changes in the banking sector, the assk academy is one of the few institutes in the national capital which helps the students shape up their career with sound knowledge of the latest trends in banking. The syllabus has been designed not just for the traditional topics in banking. Rather it has laid equal amount of emphasis on the sects of the IT as well. Thus, the students get a lot of exposure of the both worlds which are set to serve the banking industry in a tandem.

Know More About the Bank Operations.

A bank is known to be an institution which does activities of deposits and channeling those deposits into lending activities. It is also an institution which connects customers with capital deficit to customer with capital surplus. With the kind of massive scale on which the banks operate, it is important to know of how the banks’ operations are managed.

So what exactly are the banking operations? To put it simply, it is the department of a bank which takes proper care of the daily legal transactions of a bank like providing loans, mortgages and investments, depending on the operational level of the bank. The investment deals of a bank cannot be executed or even be initiated for that matter as long as the operations department does not give its go ahead.

The control and management of the trade processes of a bank and of the other branches of that bank is the most important functions of the operations department. Given there are thousands of transactions being done in the banks, the job banking operations are incredibly important and complex. But, if a professional is well equipped in terms of the knowledge they possess with the help of banking courses in delhi after graduation, they are most likely to perform well in this field

Things that Everyone Should Consider Before Entering the Banking Sector

Another important thing to note is that it is a non-revenue generating division yet it is a very vital function.  But banking operations, when done effectively can save billions of money of a bank by streamlining the processes of a bank. In other words, it is a watchdog for the bank. It oversees the regulatory requirements of the banks. With the help of better banking operations resolving discrepancies in the trade relations of an organization can also be done to great success.

Because every bank and its branches carry out transactions almost 24/7, this field is at work round the clock. They are entitled to track each and every transaction that takes place.

As for a career in banking operations, it must be told that it is a booming career option and there have been several pointers which do imply that in the coming year banks would be in the process of aggressive recruitment. Hence, the operations are surely not going to be a walkover field within the bank. Rather it would call for individuals who possess expertise and knowledge of the field.

A course in the banking operations focuses largely on the understanding the branch operations of a retail bank and associated financial services and the subsequent managing of strategies of a bank for the acquisition, business engagement and on how to retain the current business. The short term course for banking jobs can essentially cover the topics like Indian financial System, Finance essential, branch banking, banking services, credit rating, IPO grading, Mutual Fund Investment. Additionally, there shall also be chapters/modules on Indian market Issues, insurances, factoring, forfeiting and bill discounting, lease and hire purchase, venture funding and securitization.

It is time you rolled up your sleeves and set out pursuing the banking training courses that not only gives you the upper hand in the banking domain but also gives you the liberty to choose a specialization within the vast banking mechanism.

The Growing Demand of Data Analytics in Banking Sector

For every industry to grow at the highest possible level, the data has been the driving factor for many a sector and organization. A sector that vests on data without a question is banking and finance. Finance is the key precursor for the banks to boost their value and growth thereby speeding up the process of wealth generation. As a matter of fact, banking and finance are two sectors which overlap with analytics as they inherently deal with data. Therefore, the application of data analytics and its detailed study in the banking courses in Delhi opens whole new avenues of insights and understanding of the business, the market, their performance, and their growth.

 It must be understood by the aspirants that the banking sector has become a commoditized marketplace with almost every bank offering similar products and services. To stay competitive, data analytics led strategy based on customer insights can be a key differentiator to staying competitive – building bank market share and profitability and enhancing customer experience.

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What’s more? With a proper implementation plan, both the organization and professional can yield rich dividends as the application to data analytics is crucial, profitable, and extremely rewarding. Talking in terms of rewards at work, the analytics domain at banks offer superior pay and growth opportunities; as requisites, the students are required to have an understanding of the factor affecting the business negatively, the appropriate analytics solution, expected business benefits and flawless implementation.

To break it down to a more simplified analysis, the qualified data analytics professional in the banking and finance sector needs to have a well-balanced amalgamation of business domain knowledge, technical proficiency, and thought leadership.

Where does the data analytics market stand in India?

The analytics market in India has been on the rise in the recent times. Regardless of the industries, the data analytics has found a space including the banking and finance sector. That being said, it is still in the early stages of implementation or even close to its potential being tapped. What the banks need from the students who have completed the banking courses in Delhi after graduation is serious orientation to making analytics a core business function and an integral part of everyday decision making

Though the banks still rely upon the traditional methods to gather market sentiments largely based on the stock market and countries foreign policies in regards to FDI, data analytics would eventually make more of an appearance in the key factors in decision making across functions and domains.

Honing the skills

As we can concur, the domain of data analytics can be a little complicated for a few of the students even from the commerce background given the recent use of the same method of market evaluation. To get an edge, the students need specialized banking courses in delhi after graduation which helps them honing the skills in this domain as these banking institutes have well laid out modules which help in better understanding of the various verticals involved in data analytics.

MS Excel: Is it Still the Best Program for Banks to Rely Upon ?

Microsoft Excel: this is perhaps the most fundamental computer program used for accounting and financial services. Over the years, this software program is known to be used in the banks for quicker responses to its customer and client needs, to have better knowledge of financial assets status which allows a banker to service more clients with less work.

Launched in the year 1985, it has grown exponentially to become arguably the most relied, known, familiar program in the banking sector. But, with the changing times, availability of much cutting edge software and rapid digitization of the banking sector, is the teaching of Microsoft Excel’s at the private bank training academy in Delhi worth it? Let’s check out.

  • Finance and accounting- The industry of finance and accounting benefits the most from the Excel spreadsheets and the banking sector is no different. Advanced formulas in Excel have made humungous data and calculations so easy that it takes barely a few minutes to get the figures evaluated. While most users still use Excel t add, subtract, multiply, and divide a certain figures, MS Excel is equally handy software for advanced IF functions when coupled with VLOOKUP, INDEX-MATCH-MATCH, and pivot tables.
  • Marketing and product management- In the field of banking, there is quite a lot for the marketing and product management to contribute as well. The marketing and product professionals essentially do the financial analysis using spreadsheets, the banks targets the sales and market pattern which can in management of sales force and plan future marketing plans based on past results.

  • Human Resources Planning- While database systems like Oracle (ORCL), SAP (SAP), and Quickbooks (INTU) can be used to manage payroll and employee information, exporting that data into Excel allows users the banks to discover the trends, summarize expenses and hours by pay period, month, or year. It can also be a reckoner for the banks to understand how the workforce is spread out by function or pay level. HR professionals can use Excel and create a detailed spreadsheet to plan the costs, and how to best plan and control them for the future.

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The bottom line

So if there is anyone casting their doubt on whether MS Excel is still relevant must know that it is here to stay in the banking sector and that its utility has not dipped even now. It is primary software which has not lost its feasibility and the students of the short term course for banking jobs too must be taught about it.

Banking is definitely a lucrative career option but one cannot merely tinker with the idea of joining the same. A sizable number of students willing to make a career in banking are from the field of management and even engineering. Since the competition level has gone high, it is advised that the students enroll themselves in various banking courses in academies like the assk academy of business management which fine-tunes the students and make them industry ready.

Why Getting Familiar with Net Banking is the Need of the Hour

The internet has redefined the entire ecosystem of India’s banking sector. Post-demonetization period, we are more geared toward net banking which gives larger amount of flexibility. No wonder, the bank training academies in Delhi have included this module in their syllabus to give vivid idea of what Internet banking is culminating to in the country. Most banks now have moves many strides as they offer not just the facility to banking but also the features like opening an FD, paying taxes, recharging mobile, ordering cheque book etc. Since it is pretty much a new concept for many of the students pursuing the banking courses in Delhi after graduation as to what net banking is, let us get them in details.

What is Net Banking?

Net Banking, also known as online banking, is an electronic payment system. It allows you to conduct many of the common banking activities through the internet at the comfort of your home and workplace. Be it transferring funds to another bank account or checking the transaction statements, you can do them all and much more with the help of Internet Banking.

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How does Internet Banking work?         

Now that you’ve got a basic idea of what Internet Banking is, the next important question is how does it work? To do financial transactions online, you just need to log into your bank’s website. You only need a personal computer, laptop, or even a mobile phone and an internet connection to log into your online banking account. Once you have logged in, you can use a selection of financial services offered by your bank online. This relieves you from the time of visiting the bank thereby reducing your woes of spending long hours in the queue.

Setting up Internet Banking

If you have never used Internet Banking in the past, you’ll first have to set up your Internet Banking account. Most banks nowadays open an online banking account for you when you apply for a new account. However, if you’ve been using your bank account for a long time, you can get in touch with your bank for creating an Internet Banking account for you. Your bank will provide you with a user ID and password for your online banking account through e-mail or by post. You can use these credentials to log in to Internet Banking.

Key benefits of Internet Banking:

Apart from the convenience, online banking offers a host of other benefits too:

  • Saves time
  • Allows you to do financial transactions 24×7
  • Complete safety
  • Mobile access

Important tasks made easy with Internet Banking:

You can do a host of financial and non-financial transactions with the help of online banking. Some of the popular things are:

  • Funds transfer
  • Checking account statement
  • Opening Fixed Deposit (FD)
  • Applying for a new cheque book
  • Applying for new Debit Card PIN
  • Paying taxes, utility bills, insurance premium, etc.
  • Applying for loans.

Since the banking landscape in the country has gone through exponential change over the years especially in the past four years, it is all but necessary to acquaint with the banking sector with assk academy of business management to be industry ready.

An Overview of Investment Banking

Investment banking is the division of a bank or financial institution which serves the more specialized and larger institutions such as governments, corporations. This is done by providing underwriting (capital raising) and mergers and acquisitions (M&A) advisory services. The need of investment bankers in the country after completion of the relevant training in the bank training institute in Delhi is growing. Let us know more about what the investment bankers do.

What Do Investment Banks Do?

More often than not there is confusion with regard to the investment bank and the investment banking division (IBD) of a bank. It must be noted that there are many services that the full-scale investment banks offer. These include underwriting, M&A, sales and trading, equity research, asset management, commercial banking, and retail banking. The investment banking division of a bank provides only the underwriting and M&A advisory services.

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How do bank assist with M&A advisory services?

Mergers and acquisitions (M&A) advisory is the process of helping corporations and institutions find, evaluate, and complete acquisitions of businesses. This is a key function in banking. In order to bolster the process, the banks put in use their extensive networks and relationships to find opportunities and help negotiate on their client’s behalf. Bankers are capable of shifting the balance on both sides i.e. they can represent either the “buy side” or the “sell side” of the deal.

What are the other key components of investment bankings

As the students of short term banking courses in Delhi, it is equally important to know the other components which investment banking essentially deals with. These are:

  1. Debt finance- Any finance which is basically raised through borrowing is known as debt finance. The borrower must repay the full amount on an agreed timescale and must also pay interest (service the debt). Many companies choose to finance their businesses through debt because, unlike dividend payments to equity investors, the interest is tax-deductible (can be subtracted from tax payable).
  2. Equity finance- Equity is finance raised from investors in exchange for a share of the business. The major advantage of equity finance over debt finance is that, unlike with debt finance, companies are not required to make regular repayments to their investors. However, investors may be entitled to dividend payments.
  3. Bulge bracket banks- The term ‘bulge bracket’ was first used on Wall Street to denote the group of investment banks awarded top billing on the ‘tombstone’ – a financial advertisement used to notify the public of an important transaction like a share issue.
  4. Traditional trading- Traditional trading is the sale and purchase of actual securities (shares, currency, commodities, debt). Trading, in a financial context, usually refers to investments changing hands on the financial markets, these are regulated exchanges which enable buyers and sellers to interact and do business.

For pursuing a steady career in investment banking, get enrolled in the bank training academies in Delhi gain the advantage of moving ahead in your career in the banking sector.

Know about All the Rates of Banking in India

If you are one of the aspirants willing to make big in the banking sector after finishing the job oriented banking courses, you must keep yourself informed about a few fundamentals in banking. Interest rates and price stability are the two such components of banking which must be studied to detail. As we all know, it is the monetary policy aimed at the supply of money in its economic system by its control over interest rates which maintain price stability and perform to achieve high economic growth.

In India, such apex bank is the Reserve Bank of India (RBI). It is responsible to maintain the price stability in India. Besides, there are many other objectives of the monetary policy of India, which are governed and performed by the RBI. Out of them, there are various types of rates which are variable as per the economic scenario of the country and are decided by the RBI time to time.

Repo rate 

Repo rate is the rate at which banks borrow money from the RBI to meet their deficiencies. Banks do pledge their holdings of government bonds as collateral and in against of it, banks borrow from the Reserve Bank of India. When the RBI decides to reduce the borrowing by the banks it increases the repo rate. This is done when the economy is overheated and needs to be cooled. Similarly, when the RBI wants to make it cheaper for banks to borrow the money, it reduces the repo rate. This is done when the economy is not doing too well. To put it simply, the reduction in Repo rate enables the commercial banks get funds at cheaper rates whereas the increase in repo rate discourages the commercial banks to get money due to the increase in rates making it expensive.

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Reverse repo rate

 Reverse Repo rate is RBI’s borrowing rate from the commercial banks. The RBI uses this tool when there are more than enough money floating in the banking system. This rate encourages the banks to give money back to RBI and earn some interest on it. This happens when banks don’t have enough consumers/ companies to lend the money to and money is lying idle with the banks. When the reverse repo rate is increased, RBI borrows money from the banks and offers them at a lucrative rate of interest. Hence, banks prefer to keep their money with the RBI which is absolutely risk-free in comparison to lending anywhere else.

Bank Rate

Bank rate is the rate of interest charged by the RBI against the funds lent to the banking system. This banking system incorporates commercial and co-operative banks, Industrial Development Bank of India, etc. If there is a hike in bank rate, the cost of borrowing of the commercial bank’s increases which results in the reduction in credit volume to the banks and hence declines the supply of money. When RBI increases the bank rate, it means it’s a symbol of tightening the monetary policy

A change from low to high Bank rate means the economy needs cooling down. In other words, the RBI would like to reduce inflation. A change from high to low Bank rate means the economy needs a boost. In other words, the RBI would like to increase inflation.

Current Trends and Developments That Make Bank Jobs More Feasible

A stable career is what most youths would prefer at any given day especially when it is no secret that the creation of jobs in the public sector tends to remain a challenge which hits the hitherto regardless of the government regime in our country. Jobs in bank are one of the more flexible career options for many learned and qualified graduates. This has been further corroborated by the fact that the graduates from engineering and humanities have also taken keen interest on making a flourishing career in banking. So what makes banking so feasible? Let us find out.

  1. Career growth in both public and private banks- The banking sector is largely divided into two sectors; the public sector, the private sector. With this there has also been a rise in the foreign sector banks wherein a student can apply after completing their job oriented banking program in india. Public sector banks have been the very foundation on which the banking industry of India has thrived on. The private sector, on the other hand, has been identified as a technologically advanced in terms of their operational methods and offers better pay. Foreign banks, a relatively late entrant in the country are vied for the reason that it has excellent scope career growth not just in the native country but also in abroad.
  2. Bright future scope in future- Global banking practices are growing at a fast pace. Foreign banks have significantly expanded their business in offshore countries like India as they have a lot of investments at the bilateral trade level. This only adds to the opportunities for the student pursuing banking training courses. Recognition of talent is also one of the reasons why such banks are being the bright spot.
  3. Ever Expanding Sector– Whether there is an economic slowdown or a boom in growth, the banking sector successfully withstands them all. With the current government’s initiative to align larger sect of the population to banking, the banks are more than likely to open more branches in every possible corner of the country. This will only add to their potential to boost growth and profitability.
  4. Employment strategies- No longer does a bank launches its recruitment drive which aims at recruiting individuals without specialized courses such as 100 % placement banking courses. Nowadays the banks conduct not just for traditional job roles but also for various support areas such as introduction of e-cheque and truncated cheque instruments. The system of Real Time Gross Settlement (RTGS) has also picked up as far as the transaction trends among the customers go. Therefore, fund management and transfer activities are of equal importance. Likewise, tele banking is another rising avenue of banking sector as it creates demands for banking professionals who are skillful in banking on telephone. Mobile banking has seen a massive rise as well. Therefore, the banking sector has become one of the most customized sectors in recent years which have adopted methods to function in the most seamless manner.

If you are one of those who is aspiring to become a banker in near future, you had better get yourself the required certifications which gives you the competitive edge. Moreover, the banks in the public sector are also conducting recruitment through centralized systems such as the IBPS which does need the assistance of the private bank training academy in delhi .

Some Of The Prevalent Banking Courses And Diplomas To Pursue

Banking is an essential portion of the budget of each government. This is a sphere of life in which a modern person must understand, if he wants to preserve and increase his savings, arrange loans, wants to use other services of financial institutions.

The essence of banking

The importance of the banking courses in Delhi is difficult to overestimate in our time. Professionals view the essence of banking through the lens of marketing and management, innovation, statistics, and logistics.

The essence of banking is the gradual accumulation, safe storage, increase of capital through the management of assets and liabilities, the provision of savings, investment, lending services, as well as currency exchange operations, handling of securities, by bank transfer, etc.

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Where are they studying banking?

Banking is a prestigious, fashionable specialty that requires care and responsibility. The functions of the specialist depend on the level of the position. If an employee is authorized to serve clients’ cash operations, his tasks are: control over the issue, repayment of loans, issue, change of bank debit cards, and more. Banker- intermediary, the operator of the credit system.

Banking Specialist

A specialist in the field of banking is a person with high mathematical ability, an analytical, deductive mindset, good memory, a desire to bring what has been started to the intended result. An employee of the bank receives, structures, analyzes, and organizes the received information. Concentration, diligence, dedication, ability to pay attention to details- the main features of a competent banker.

The work requires a thorough knowledge of economic disciplines, the structure of banking operations, and having healthy ambitions. Successful completion of a small course in the bank for young professionals after hiring guarantees a successful career. Many banks practice the exam before accepting a candidate for a vacant position.

The specialty “Banking” is intended for the training of specialists who are able to perform banking financial and economic manipulations: the provision of loans, opening deposits, maintaining accounts, documentation, and accounting. Also in the training of banking includes a thorough preparation of graduates in the implementation of cash management services, interbank control, accounting, working with assets, customer liabilities, securities and other operations.

The specialty allows the graduate to work in credit institutions, banks, and economic, financial departments of enterprises. A professional banker is a high-profile specialist who knows all the subtleties and peculiarities of the financial system of a megacity.

Banking courses

There are also banking courses in Delhi after graduation, the cost of which depends on the duration of the course itself. Such courses can be taken from recognized institutes only.

 

Students studying banking study not only the theory of this specialty, but also learn to navigate in similar banking situations and find the right solution. In the process of teaching, much attention is focused on the financial system, and also features of banking under the conditions of the Indian economy.

Particular attention is paid to the study of banking operations and transactions, reporting, methods of protection of banking information, design of documentation.

Specialists in this field will always be able to find work in banks as cashiers, supervisors, credit agents, and operators. Graduates of this faculty have the opportunity to find a decent job and ensure a large income. The position held will determine the terms of reference, in most cases this is work with clients. Since banks are engaged not only in lending, but also specialize in various operations, banks serve a certain clientele.