Banks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as Automated Clearing House (ACH), Wire transfers or telegraphic transfer, EFTPOS, and automated teller machine (ATM).Banks provide different payment services, and a bank account is considered indispensable by most businesses and individuals. Non-banks that provide payment services such as remittance companies are normally not considered as an adequate substitute for a bank account.
Banks can create new money when they make a loan. New loans throughout the banking system generate new deposits elsewhere in the system. The money supply is usually increased by the act of lending, and reduced when loans are repaid faster than new ones are generated. In the United Kingdom between 1997 and 2007, there was a big increase in the money supply, largely caused by much more bank lending, which served to push up property prices and increase private debt. The amount of money in the economy as measured by M4 in the UK went from £750 billion to £1700 billion between 1997 and 2007, much of the increase caused by bank lending.Banks offer many different channels to access their banking and other services:
- Automated Teller Machines
- A branch is a retail location
- Call center
- Mail: most banks accept cheque deposits via mail and use mail to communicate to their customers, e.g. by sending out statements
- Mobile banking is a method of using one's mobile phone to conduct banking transactions
- Online banking is a term used for performing multiple transactions, payments etc. over the Internet
- Relationship Managers, mostly for private banking or business banking, often visiting customers at their homes or businesses
- Telephone banking is a service which allows its customers to conduct transactions over the telephone with automated attendant or when requested with telephone operator
- Video banking is a term used for performing banking transactions or professional banking consultations via a remote video and audio connection. Video banking can be performed via purpose built banking transaction machines (similar to an Automated teller machine), or via a video conference enabled bank branch clarification
- DSA is a Direct Selling Agent, who works for the bank based on a contract. Its main job is to increase the customer base for the bank.
Retail banking
- Checking account
- Savings account
- Money market account
- Certificate of deposit (CD)
- Individual retirement account (IRA)
- Credit card
- Debit card
- Mortgage
- Mutual fund
- Personal loan
- Time deposits
- ATM card
- Current Accounts
- Cheque books
Business (or commercial/investment) banking
- Business loan
- Capital raising (Equity / Debt / Hybrids)
- Mezzanine finance
- Project finance
- Revolving credit
- Risk management (FX, interest rates, commodities, derivatives)
- Term loan
- Cash Management Services (Lock box, Remote Deposit Capture, Merchant Processing)
- credit services
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