A financial institution is a type of institution which deals in with the money of the public and is an establishment which accepts deposits from, the public and allows and grants loans to the public which is accepted from the raising funds in such financial institutions. The financial institutions grant loans in many ways. A person can go and visit a bank for face-to-face loan discussion or he or she can even get an SMS loan from the bank by just letting the bank know through an official message. A financial institution generally deals in the exchange of currency in favour of the public providing customer service and customer satisfaction in return.
Different types of financial institutions
If seen carefully, financial institutions deal with public deposits but the financial institutions are not limited to banks only. The financial institutes can be of different types which prove to of different uses. The financial institutions can be further divided into:
- Commercial banks, these are special establishments which accept the deposits made by the public and grants loan to the public as and when needed. The commercial banks provide its customers with other facilities like a debit card, credit card, check and also loan by phone.
- Investment banks are those which deal in underwriting the non-subscribed shares of a company or another financial institution. In this way, the banks enjoy long-term returns thus increasing the financial structure of the bank itself.
- Insurance companies are companies which pool the money of the public and invest the money in other companies so that they are benefitted by the profits of the company. The money of the public held back by the insurance companies is paid back once the maturity period expires.
- Banks often act as intermediaries and make a deal between the buyer and seller. And thus like a broker the bank also acts as a broker and enjoys commission from the parties, the seller as well as the buyer. In this way, the bank completes the transaction between the buyer and the seller of the product.
The factors on which choosing a financial institution depends
All of the above were examples of financial institutions and all these make the life of the public easier as they carry out their responsibilities responsibly. Now as customers, it is our right to choose and not to choose a bank or a financial institution based on our privileges. One of the privileges is to have access to phone loans. There are certain criteria according to which one must choose the correct financial institutions. Let us go through some of the key points must choose or a perfect finance institution match.
- A person must be very careful of the geographical location where he or she resides and the place where the financial institution is. A customer will always prefer to choose a bank which is situated nearby to the place of residence.
- The availability of ATMs of a bank plays an important role in choosing a bank. In case the bank is situated in front of the customer’s house but the bank lacks in diversifies spread of ATM counters, then the customers shall lose interest on the bank and choose another alternative.
- The working hours of the bank should be flexible enough to allow the customers complete their work in one single day.
- The customers are more inclined to those financial institutions which provide top-notch customer service no matter what the issue might be. This also includes issues solved with respect to SMS loan which often concern the customers of a bank.
- Online banking is also another feature of the bank or a financial institution which it should provide. This includes the use of loan by phone. This allows the bank to become more flexible.
Other key features mandatory for choosing a bank
Some more features which add to choosing a proper financial institution are as follows:
- Mobile/ online banking
- Programs relating to a person’s retirement
- Savings account regarding medical health
- Insurances (health, car, home, etc.)
- Loans (both short and long-term)
- Issue of credit cards
- Check facility
All these above-mentioned services provided by the bank will definitely be a customer magnet and these services will obviously pull the customers towards the bank and make them choose them over the others. Customers availing phone loans and getting them sanctioned sand granted also increases the reliability of the bank and the customer is satisfied in the long run.