The history of modern banking begins in Italy in the Middle Ages. Today, there are different financial institutions, including retail, commercial, investment, private, and online. They serve individual customers, companies, high net worth individuals, charities, governments, and other entities. They accept deposits from customers and offer a wide array of loan products to make profits.
Central banks have important functions such as the control of interest rates, money supply, and the national currency. Retail banking is a branch that serves customers, with an array of services such as credit and debit cards, loans and mortgages, savings accounts, and others. There are also commercial establishments that offer investment solutions, mortgages, business and auto loans, and others. Some institutions don't have branches and offer services online. Investment banks are another variety that raises capital for corporations, national authorities, and individual customers. They specialize in investment management, securities, mergers and acquisitions, urban and direct private investment, and more. Private banks offer products and services to high net worth individuals with sizeable assets. The focus is on wealth management and preserving substantial assets. They offer tailored solutions to help customers to diversify their investment portfolios. High net worth individuals are offered special solutions such as foreign exchange services, dual-currency deposits, and others. They can choose from accounts in different currencies.
Customers can choose from different types of accounts such as checking, savings, and money market accounts, certificates of deposit, and others. A checking account is offered to customers who make frequent deposits and withdrawals. Most products don't carry an interest rate or the rate of return is very low. Savings and money market accounts, on the other hand, offer a rate of return but have a limit on the number of withdrawals and deposits. Money market accounts are offered by credit unions, banks, and other entities and have higher balance requirements. Customer deposits are insured by FDIC meaning that money is safe.
In addition to deposits, financial institutions offer personal and business loans, mortgages, secured and unsecured lines of credit, and other products. They provide advisory, risk management, investment, trading, and finance services. They also feature customer-based solutions and services across different industries such as agriculture, infrastructure, exploration companies, telecommunications, and many others. Financial institutions help customers to improve their liquidity, manage risk, and expand to new markets. They also offer strategic advice, structured and foreign exchange products as well as asset management and corporate finance advisory. Some financial institutions also offer treasury services such as escrow, commercial, and liquidity services. The range of products also includes trade and cash management solutions. The goal is to help customers to meet financial challenges and raise working capital. Banks also offer online and fast-track solutions to clients with cash businesses. They feature operational tools and global expertise to help customers to manage risk across asset classes, regions, and different types of accounts. Market intelligence and risk management contribute to exceptional customer experience. Banks also offer global solutions to corporate clients, including solutions to optimize their working capital and meet multi-currency challenges.
Online banks are a fairly recent development and offer attractive solutions such as loans with a low interest rate and high-yield savings accounts. Customers have access to a secured website that allows them to conduct transactions. Basically, this is an option for clients who wish to access their accounts in different ways, including through mobile applications, snail mail, and other means. In addition, financial institutions offer mobile, phone, and online services that allow customers to view their statements, pay bills, make transfers, and more.