COMMUNICATIONS AND MEDIA

: COMMUNICATIONS AND MEDIA

Introduction
The banking sector has been in existence for quite an extended period. Even though it began in the 14th century in Italy, the notion had already been practised during the past periods of the Babylonian civilization, whereby farmers used to borrow grains from the wealthy merchants so that they could trade goods in other towns. Nonetheless, banking, as we all know currently, actually started in 1472. during this time is when the Monte dei Paschi di Siena, which is the oldest bank presently, was established. In the not long ago, decades, technology was merely accessible in the banking sector. It signifies that banking clients had no control over electronic dealings or transactions that generally took place amid the banking institutions themselves. The ATM machines, as well as the credit and debit cards, are some of the remarkable inventions in the current decades that revolutionized the banking sector (Brunnermeier, 2019). However, their impacts are less remarkable as compared to the current technology experienced today.
Loans
A bank can assist in optimizing growth, minimizing risk, and assist one’s environmental services business to prosper. We comprehend that complicated challenges that affect success in business are lack of capital as well as commodity market fluctuations, to a limited flow of cash, ageing equipment to rising costs of economy. The banking environment provides more than just ordinary banking. They also take part in the provision of business advice to help an individual’s business to grow, thus, making them business advisors and not just bankers (Dassatti. 2019). For example, at Comerica, for them to issue out loans to their customers, they offer business solutions for value creation, growth, and profitability and not just terms and rates. Their bankers try as much as possible to offer the necessary foundation to assist businesses to thrive. Their seasoned business advisors are available to assist in planning, guiding, and consulting environmental services businesses on projecting, planning, safeguarding their earnings in every step of the way.
That is why in the banking loaning sector or environment, the business advisors begin by comprehending one’s special requirements from the primary level before recommending how to help someone grow through loans and enough advice. The banks help by tailoring working capital lines of credit, designing of flexible Capex fiscal solutions, optimizing of acquisition funding, interest rate risk management as well as increasing free flow of cash to reinvest in the business..

In the past, loans were complicated to get from a bank. For instance, one had to have a permanent job whereby they could use their payslips to acquire loans. It was very hectic since people with businesses, especially those with small enterprises, were not able to access loans due to the risks of their jobs. Approving loan forms would also take time, whereby a manager could take their sweet time to approve the loans. They could even go for business trips leaving the forms unattended. After loan approving, communications would also take much time (Lambert, 2019). Once one had qualified to get a loan, they would stay for a very long time to get it. It would make them anxious to get the money and could also feel demotivated.
In the current days, loans have become easy to access. For instance, there has been a significant emergence of mobile app loans that have made people be able to acquire loans at the comfort of their houses—revolutionizing one’s mortgage journey concerns more than going faster. It is time to move smarter. With the robust suite of equipment, the loans and mortgage technology platform expedites and optimizes the mortgage procedures. It performs more than just speeding up things. With perceptive innovation as well as an intuitive, seamless experience, the banks’ capacity on loans help the clients compete more efficiently, today and in the future since it is the time to move faster. The technological changes also have encouraged data-driven confidence whereby it has mitigated risk and maximized the power of decision making via a safe ecosystem of connecting equipment connecting one to the information that empowers one’s business. The automated structures minimize guesswork in business.
Commercial banks go on leveraging on mobile phones to expand loaning, deposit savings, or credit processing. It becomes less burdensome, though, can escalate the ratio of non-performing loans. Without a doubt, virtually every bank across the world has an app that allows clients to access credit facilities that they offer besides carrying out other important issues in banks. The apps permit clients of the bank to carry out banking activities, get an instant loan, transfer money, or buy insurance besides carrying out numerous other functions that used to be done by the traditional banking.
With mobile banking applications, bank websites on tablets or phones, one can also carry out many everyday tasks, like checking account balance, locating nearby ATMs, and depositing cheques. The value of bad loans in the banking industry is believed to have risen a great deal (Brunnermeier, 2019). The banking industry data compiled from the lenders’ fiscal records reveal that gross NPLs also escalated significantly.
Finance technology has been extraordinarily made to tackle the predicaments facing the lending sector and is interrupting the loan-underwriting procedure. Therefore the lending industry, as it is known, can capture complicated patterns in the client’s information analyzing many features like a business and personal revenue, financials, credit scores as well as more to find borrowers that are very likely to default.
Savings
A savings account is usually an interest-generating deposit account in a bank or other fiscal organizations. Even though these accounts generally pay a modest interest rate, their security and reliability make them an excellent option for parking money; one needs available for short term requirements. Savings accounts used to have a disadvantage of the way in which frequently one can withdraw finances. Though, generally provide exceptional flexibility that is perfect for building an emergency fund, saving for a short-term objective like buying a car or going on vacation, or merely sweeping extra cash one does not need in checking account so it can earn more interest.
In the past, people used to save money in the houses; others could dig them underground so that people, especially thieves, would not have access to them (Illuecca, 2014). Through this, people would go through losses whereby money would be stolen. Others that were buried underground would get decomposed and therefore rendered worthless in the long run. Others could get burned and thus making the owners run at a significant loss.
In the later years, people started banking, whereby money-saving institutions emerged, and people could now make sure that their money is kept safe in the banking institutions. It did not just come with just saving, but it brought along the fact that when one saves money, they would, in return, earn some interest on it. It led to many people saving their money in banks. Savings accounts started to be regarded as liquid investments whereby one’s money was readily available. It is also seen to be user-friendly, whereby one could take set up regular transfers from their checking to saving accounts.
In the current years, saving money is very easy, whereby one can just save their money by the use of mobile banking. There is no need for carrying a considerable amount of money taking to the bank. The safety of funds is paramount, whereby as the bank keeps the customer’s finances untouched. In the stock market, there usually is the danger of stocks performing poorly and one losing money instead of gaining. One’s profits may be low, whereas savings via a bank, but one is not taking the threat of losing significant amounts of cash via the saving accounts. Current savings also have the options for short term savings whereby one can save for a trip, for instance, down payments of expensive items that one anticipates purchasing in the nearby future can easily be carried out. One can save up quickly in a savings account through their banks and then right away withdraw the cash when the time comes(Illuecca, 2014). Therefore, for short term savings, this is the best way to go.
Savings also currently help in emergency funding wherein if one saves their money in the bank, one can have instantaneous access whenever there is an emergency. For example, if one’s car breaks down, one would not worry. They can withdraw a certain portion of their savings immediately. It also comes in handy if one requires a cushion within their budget in a hectic month. Therefore, current savings in the banking environment through the use of technology have made savings to be more comfortable for clients since it is an excellent backup plan that’s easy to access. Finally, one great benefit of saving money in a banking institution or even a credit union in the current days is that one’s savings are federally insured by the NCUA as well as the FDCI. If there is a run on the banks or the credit institutions closes for certain unforeseen purposes, the customers’ cash is insured up to a value of $250,000.
Insurance
Both insurance corporations and banks are financial institutions, though they do not have as much in common as many may think. Even though they have certain similarities, their operations are on the foundation of various models that lead to some remarkable contrasts between them. Traditional insurance strategy provided various advantages like risk cover, safety, and tax benefit and fixed income returns. These are the oldest insurance strategies and cater to people with a reduced level of risk. Traditional insurance policy strategy offers a sum assured as well as a guaranteed or vested bonus at maturity. These policies take a restricted exposure to insignificant risk equity, and therefore the downside probability is low as well. These taxes were suitable for tax planning reasons (Sparks, 2011). The premature withdrawal was not permitted in the case of traditional insurance policies.
Traditional insurance policies like the whole life insurance, endowment insurance, money back provided several advantages like risk covers, safety and tax benefits, fixed income returns. These were considered to be risk-free because of their fixed returns in instances of maturity and death of the term. This form of insurance plan offers insurance covers to the policyholders for a whole lifetime. On the contrary to the current policy, this type of strategy never runs out. In a case of unavoidable death of the insured, the insurance payout is made to the beneficiaries of the policy.
Currently, the insurance and banking industries are almost merging up. There is the unit of banking in the banking institutions regarded as the bancassurance. It is an arrange a bank together with the insurance corporations that permits insurance organizations to sell its services as well as products to the bank’s customer’s based. This relationship usually is profit-making to both companies (Bernal, 2014). For instance, banks generate extra revenues by selling insurance products and the insurance corporations extend their client bases without expanding their sales force or paying brokers and agents commissions.
Bancassurance provides multiple advantages to clients, whereby it is very convenient. For instance, banks have allocated insurance loans whereby clients or potential clients can easily access insurance loans to pay for their policies. The clients fill in the Insurance Premium Funds form, also known as the IPF. These funds will help clients to finance their premiums for life insurance, general insurance, health insurance and many others. The IPF has been structured in such a way that loan payment is spread across the year. For instance, for a period of four months, six months and eight months for certain banks. These make it easy for the client to choose their best terms that they can be able to pay the loan without struggling. Therefore, banks have made insurance to be easy for clients thus making it a one-stop-shop for all financial requirements. For the banks and the insurance corporations, bancassurance heightens diversification of income or revenue and thereby brings about a higher volume as well as profits for both sectors.
The increasing need for money and the growth of the economy have contributed to the increase of bancassurance across the world—the restraining features of the worldwide bancassurance across the globe. Therefore, currently, the restraining features of the worldwide bancassurance market are the risks connected to the banking industry reputation as well as the stringent regulations and laws enforced in certain places (Al-Othman, 2019). Even though some countries have not embraced bancassurance, the worldwide trend is moving towards the liberalization of banking regulations, including the opening up of domestic markets to international organizations.
Investment

Investment in banking is a special sector of banking operation that assists people or corporations to raise capital and offer financial consultancy services to them. They are perceived to be intermediaries between investors and security issuers and assist new corporations to be in the public domain. They either purchase the entire accessible shares at a value approximated by the proficients and sell again to the public or sell shares on the issuers’ behalf and take a commission on every share. Investment banking is one of the most complicated financial mechanisms across the globe. They serve numerous distinct purposes, as well as business entities (Groysberg, 2011). They offer various types of fiscal services, like proprietary trading or trading securities for their accounts, acquisition advisory and mergers that involves assisting corporation in M&As, leveraged funds that incorporates lending money to corporations to settle acquisitions and buy assets, restructuring, which include improving structures of corporations to make a business very efficient and assist it make maximum returns, as well as new matters or IPOs, where these banks help new corporations go public.
A long time ago, people used to invest in material possession. It is whereby one saves a lot of money for quite a long period of time and later on would buy material possessions like buildings, animals, land etc. time-wasting and very tiresome. One could even die before reaching his or her target to buy or build whatever he or she wished to acquire in life. Other numerous could leave whatever they started halfway due to pressures of illness and death. Getting contractors to build buildings Ifor instance was very difficult since there were very few building contractors yet very expensive. The contractors could take much time to do their work since they had heavy workloads. The building materials were also very scarce and costly due to poor road networks. Other materials could reach the site when they are already broken and worthless. It made property investment to be cumbersome and expensive.
With the emergence of banks with their products, investments have been made easy. For example when it comes to the acquisition of land, when one has a lot of savings in the bank or has a stable income, the bank can help them acquire a piece of land and develop on their behalf. Building and construction that has been very hectic to people have been made easier. Banks provide loans for education; therefore, many people have trained to be building and construction contractors, thus making the industry to be flooded and cheap to the investors. Banks have also been involved in investments, whereby they build for their client’s buildings. They take part in the whole constructions (Mertens & Thiemann, 2019). For example, they can help a client build a rental house in his piece of land. Afterwards, they will collect a percentage of the rent for the time that equals their expenditure, and in the end, after accomplishing their mission, they leave the client to be fully in charge of their business.
Mortgage loans that are facilitated by banks are there to help people acquire lifetime investment, that is a house to stay in. Every individual works hard so that in their sunset ages, they will have a place to call home. Therefore banks have ensured that people do not have problems by this. They have ensured that clients can start leaving in their own houses and pay manageable amounts up to when they will finish and entirely acquire the whole house rather than paying rent in an entire lifetime without ever owning a home. Banks also are involved in asset finance, whereby they help people get car loans, business vehicles loans (Köhler, 2014). One can borrow from a bank, a loan to buy a business vehicle that will help them in business. In the long run, the vehicle through the business dealings will be able to pay the loan—thus making asset investment easy and accessible for any business proficient and potentials.
Conclusion
In summary, different personal finance products have made life easy over recent years. For instance, loans in the past used to take a long time to be processed so that clients could get. But currently, loans are very easy to get due to the mobile application programs. One can nowadays acquire loans at the comfort of their houses. Clients only need to be in possession of a smartphone and Internet so that they get loans. The loan interests are not exorbitant, thus making clients be able to access them whenever they want and pay them in due time since it is affordable.
Savings have also been made more accessible since one does not have to carry money to the bank. A bank client only needs to download their specific bank apps on their smartphones. Afterwards, they can just be saving whichever amount they want and earn interests, unlike in the past, whereby people used to save a lot with fewer benefits. There was also a specific amount to start saving and earn interest. Banks currently do advertise and plead with people to save with them unlike in the past whereby they did not enlighten people to save and could have a long process to open a savings account that maybe could not be approved by the banking officers.
Insurance is very important in life. Health, general and life insurance make our life smooth and manageable. Banks have decided to unite with insurance corporations and have created a department within the bank to cater to the insurance needs of the clients. Bancassurance help clients to get insurance loans, thus helping the policyholders not to have difficulties in paying for their insurance premiums and also helping the banks to generate extra revenue or profits for themselves. They also help insurance companies to cut on the cost of paying commissions to brokers and agents and thus making the industry to depend on one another mutually.
Investment is a critical thing in life. It applies to both individuals and corporations. For instance, individuals would like to own property that generates money after a long period of working so that they do not have problems during their sunset ages. Companies also want to acquire assets that will enable them to make a profit in return. Therefore, the emergence of banking and the technology in it has seen to it that people, as well as corporations, invest and become stable. They take part in solely helping to fund and in return, they get revenue to maintain their services to other clients.

References
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Bernal, O., Gnabo, J.Y. and Guilmin, G., 2014. Assessing the contribution of banks, insurance and other financial services to systemic risk. Journal of Banking & Finance, 47, pp.270-287.
Brunnermeier, M.K., Dong, G.N. and Palia, D., 2019. Banks’ non-interest income and systemic risk. Available at SSRN 3328890.
Dassatti Camors, C., Peydro, J.L. and Rodriguez-Tous, F., 2019. Macroprudential and monetary policy: Loan-level evidence from reserve requirements.
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Mertens, D. and Thiemann, M., 2019. Building a hidden investment state? The European Investment Bank, national development banks and European economic governance. Journal of European public policy, 26(1), pp.23-43.
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