Professional Documents
Culture Documents
Relationship
F-209: Law and Practice of Banking
Shift in Business Focus
Gone are the days when borrowing was criticized and objected to and
the borrower was looked down upon.
Right from small businessman, up to the biggest business tycoon, they
invariably depend upon finances of different types given by the banks.
There has been a shift from a transactions to relationship focus in
every business. First act is to attract customers and second act is to
retain customers.
A shift to a relationship strategy often represents changes in mindset,
organizational culture, and employee reward system.
Banking Company and Banker
Earlier View
According to Banking Companies Act 1991, "banking company" means
any company transacting the business of banking in Bangladesh, and
includes all new banks and special banks;
Modern View
Single transaction
Customer
Neither the number of transactions nor the period during which business has been
conducted between the parties is material in determining whether or not a person is a
customer.
Thus, in order to constitute a person as a customer, he must satisfy the following
conditions:
1. He must have an account with the bank i.e., saving bank account, current deposit
account, or fixed deposit account.
2. The transactions between the banker and the customer should be of banking nature i.e.,
a person who approaches the banker for operating Safe Deposit Locker or purchasing
travelers cheques is not a customer of the bank since such transactions do not come under
the orbit of banking transactions.
3. Frequency of transactions is not quite necessary though anticipated.
Types of Customer
Regular Customer
Casual Customer
Cross-Country Customer
Corporate Customer
Internet Customer
Customer
Deposits account holder
Borrower
Purchaser of DD, TT, PO
Importer
Exporter
Remitter
Bill Payer
Tasks of the Banker
Know your Customer (KYC)
Well behaved, ever smiling
Attentive for satisfying customer
Use of courteous language
Avoid expressions of anger
Keep contact with the customer
To be mentor of the client
Send success stories
Seek advice of the client
Consider your client as development partner
Do customers always purchase
the best product?