OFFICE PRACTICE N5 MALUTI TVET BETHLEHEM CAMPUS J

Transcript:OFFICE PRACTICE N5 MALUTI TVET BETHLEHEM CAMPUS J:
OFFICE PRACTICE N5 MALUTI TVET BETHLEHEM CAMPUS J CASTELYN Topic 7: Auxiliary services Financial services and products 1. FINANCIAL SERVICES: FIVE FINANCIAL SERVICES: 1.1 BANKS 1.2 BUILDING SOCIETIES 1.3 INSURANCE COMPANIES 1.4 ACCEPTANCE BANKS 1.5 DISCOUNT HOUSES 1.1 BANKS MERCHANT / COMMERSIAL BANKS/ INSTUTIONS: Offers wide range of financial and related services with a widely distributed network throughout the country. Has a nationwide network of ATMs and internet banking facilities available. Commercial banks fall under the Reserve Bank, while investment and merchant banks remain the most competitive banks in the country. The four biggest banks in the country are ABSA, FNB, Standard Bank, NEDBANK, continue to consolidate their grip on the retail market. Banks SERVICES OFFERED BY BANKS: Safekeeping of money, other valuables or important documents on behalf of customers Financial assistance on matters such as insurance, investments and taxation from the bank Foreign currencies to business people to pay for imported goods and to travellers and tourists Pay for goods and services bought, either by cheque, debit order or credit transfer Customers can also go through their banks to receive payments for goods and services sold The bank will accept payments from people and businesses that pay money into a specific account held with the bank. Banks enable customers to transfer funds between different accounts at the same bank and to accounts at other banks without withdrawing the money , not to handle cash in the process. Provide finance to customers in the form of loans, mortgage bonds and overdrafts Banks charge interest on money customers borrow. Banks provide ATMs from which cash can be withdrawn by accountholders 24hrs a day, avoiding long queues. Instalment sale financing: items are paid off in instalments over a period of 6 – 60 months. Financing on lease: ownership of purchased goods never passes to the purchaser not even when fully paid. Mortgage bond financing: loans for purchasing and building homes. Credit cards: used for all purchases where accepted. Travellers cheques: it is accepted anywhere in the world and sold by commercial banks. Banks: Services offered by banks: Bank guarantees: For property and other transactions, to protect the interests of both the purchaser and seller. Bill discounting: on presentation of the bill of sale the bank pays the amount on the bill to the company. The bank loan is repaid when the company receives the payment for the goods. Bank drafts: for foreign