Banking
—— Industry providing financial services related to storing, lending, and managing money.
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Business Model
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Industry Insights
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Famous Products
Value Proposition
Banks act as intermediaries within the economy, connecting depositors with borrowers and facilitating financial transactions. They provide security and liquidity for funds, while also enabling economic growth through credit creation.
Customer Segments
Banks serve a diverse customer base, ranging from individuals to multinational corporations, and including small businesses, large corporations, governments, and non-profit organizations.
Revenue Streams
Banks generate revenue primarily through the difference between interest earned on loans and interest paid on deposits (Net Interest Income). Other revenue sources include fees for services like account maintenance, transactions, wealth management, and investment banking activities.
Cost Structure
Major bank costs include interest expenses on deposits, operating expenses (salaries, rent, technology), regulatory compliance costs, and provisions for loan losses.
Key Activities
Core banking activities encompass deposit taking, lending (commercial, consumer, mortgage), payment processing, trade finance, foreign exchange services, and risk management.
Key Resources
Essential bank resources include their branch networks, ATMs, online and mobile banking platforms, trading infrastructure, vault and security systems, and a skilled workforce.
Key Partnerships
Banks collaborate with other financial institutions, credit rating agencies, technology providers, and payment networks to expand their service offerings and geographical reach.
Customer Relationships
Banks aim to build lasting customer relationships by providing personalized financial advice, convenient banking channels (branches, online, mobile), and a comprehensive suite of products and services.
Channels
Banks interact with customers through various channels, including physical branches, ATMs, online banking platforms, mobile applications, telephone banking, and dedicated relationship managers.