Relationship banking can be defined as a strategy that is used by the banks to enhance their profitability. In order to make their relationship strong with their customers and clients the banks accomplish the task of cross selling financial products and services to their customer and clients. These customers can be the business entities as well as they can be the individual clients with which the bank is currently dealing. It is the task of the relationship banking to offer a wide array of products to their customers and these products may include financial instruments, services and other kind of monetary products. These kinds of services go beyond the concept of simple checks and savings accounts.
In addition to simple checks and saving accounts the relationship banking products may include a number of different kinds of certificates of deposit, deposit boxes that are safe, insurance banking services, investment banking services, credit cards, debit cards, car and home loans and business services such as credit card processing services. The relationship bank can also offer specialized kind of services that are used for special demographics or for the people belonging to special age group such as loans for students and senior citizen.
Customers may also take advantage of the relationship banking in order to get more benefits and extra treatment from the bank in order to get more gains from the bank. With the help of this kind of relationship banking customers can also maintain high level of customer service.
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