Consumer Banking Service

8/3/2019 Consumer Banking Service

1/22

Chapter-9 Research Ques

Chapter-9

Consumer Bank

Bank which is incorporated in order to facilitate the individuals and consumers in their daily life.

9.1 Consumer banking in Askari Bank Limited

Consumer Banking Services Divisions products and services mostly comprise

auto finance, personal finance, mortgage finance, Askari Credit Cards under the

MasterCard brand, Askari Corporate Credit Cards and Zarai Credit Cards.

The consumer finance segment adversely affected by the recent phenomena of

inflation and changes in interest rates. The recent data suggests further decline to

the already contracting market of this segment. In this situation, our consumerbanking repositioned itself with focus on containing the growth of problem loans

and improving recovery efforts and internal controls. Also, a very cautious and

selective approach was adopted for fresh lending during the year. Such efforts

have started yielding results and the key performance indicators for this business

have started to register notable improvement.

Going forward, with the improvement in economy, our consumer finance shall be

focusing on expanding target market and enhancing our portfolio through new

and improved initiatives and products. Special attention is being given to

business opportunities involving strategic alliances that will earn sustainablereturns. Also, greater emphasis will be placed on secured form of consumer

lending. We believe that with these measures, CBSD is positioned to increase

product offerings while improving and maintaining a quality of its risk asset

portfolio.

Internship report on Askari bank limited


2/22


9.2 CBSDs current product offerings include:

Credit Cards

Platinum, Gold, Silver Zarai & Corporate)

Ask Card

Askari Debit Card)

Askari Banks Personal Finance.

Askari Banks Mortgage Finance

(Home loans)

Askar (Auto loans)

Rupee Traveler Cheques

Smart Cash

Running Facility for customers)

Askari Banks Business Finance

Business loans)

Flexible Credit Plan.

I - Net Banking

Internet Banking Services)

Askari Touch N Pay

Electronic Bill Payment Services)

Cash Management Services.

Askari Value plus (Deposits)



3/22


9.2.1 Credit card

eatures Details

igibility: Pakistani Resident.

ge:

Basic Supplementar

Salaried: 21-61 years.Min 18 Yrs.- NoAge limit.

SEB/SEP: 21- 65 years.Min 18 Yrs.- NoAge limit.

alary/ Incomeer Month:

Approved Cat.Silver Gold

Perm. Cont. Perm. Con

A 30,000/- 35,000/- 50,000/- 60,0

B 30,000/- 35,000/- 50,000/- 60,0

C 35,000/- 38,000/- 55,000/- 70,0

NAC 40,000/- 45,000/- 60,000/- 80,5

SEB/SEP

Avg. Bal. Rs. 30,000/-

119,999/- (For last 6 mth.statement).

Avg. Bal. Rs.

120,000/- 400,0(For last 6 monbank statement

Platinum Card

Salaried Businessman.

150,000/- 200,000/-

mployment

atus:Salaried: 1 year & SEB: 1 year.

eferences: 1 relative + 1 associate not working in the same organization.

ebt Burden: Maximum 50% of the net disposable income. (Including all facilities appea



4/22


in ECIB).

harges: As per schedule of charges.

ark-up Rates:

Salaried SEB/SEP

Basic/Supply. 3.2% per month. 3.45% per

month.

Balance Transfer. 2.15% per month.2.15% permonth.

ocumentation:

1. Complete filled & signed application form.

2. Clear copy of Valid CNIC.

3. Latest (not older than 2 months) salary slip. Original or Attested.

4. Copy of any utility bill (received at business & residential premises.

5. IT-2 form or income estimation, in case of SEB/SEP (Sole Proprietorship

6. Copy of the NTN or sole proprietorship letter from the bank in case ofSEB/SEP (Sole Proprietorship).

7. Last 6 months personal bank statement or company bank statement inpartnerships.

8. Copy of the registered partnership deed or Bank Letter confirming thepartnership status.

9. Undertaking of Credit Facilities already availed from all banks & Undertfor not utilizing the facility for IPO Subscription.

CREDIT CARD

eatures Details



5/22


EST REWARDOINTS:

Askari Master Card gives you extravalue for the money you spend. Theaccumulated points appear on yourmonthly billing statement. Toredeem your points for existingvouchers, you can choose from

Askari Master Card RewardCatalogue or call Askari MasterCard at 111-000-787.

ORLDWIDECCEPTABILITY:

You can withdraw cash against yoursanctioned credit limit as cashadvance in Pakistan and around theWorld through ATMs displaying aMaster Card, 1-Link, Cirrus &Maestro logo or designated AskariBank Limited branches, during

banking hours.

ALANCERANSFERACILITY:

Transfer your outstanding balanceof other cards on to your AskariMaster Card. Now you can avail thisoffer of balance transfer atincredible rates.

4-HOURUSTOMER

ERVICES:

With Askari Master card., you are just a phone call away from the assistanyou need. Our Askari Master card. customer service is available 24 Hours day, 7days a week. To register complaints and to get response to your qu

please call UAN: 111-000-787.For Karachi, Lahore, Rawalpindi & Islamaba

UPPLEMENTARYARDS:

Save yourself the inconvenience of applying for a separate Askari Master for your loved ones. You can request up to 5 supplementary cards when yapply for your own card. You will receive a consolidated monthly accountstatement which covers all cards. This offer is available to your loved ones18 years of age.

OST OR STOLEN

ARDS:

Please report loss or theft of your Askari Master card. Immediately at ourcustomer Services UAN: 111-000-787 for Karachi, Lahore andRawalpindi/Islamabad. Once you have registered the loss of your credit ca

your liability against its fraudulent use will be limited and we will send areplacement card within 48 hours of reporting.

OUR TRAVELINGAFETY NET:

When you purchase your international ticket on Askari MasterCard, you arautomatically covered under our Travel Insurance plan* (in case of personaccident resulting in death or permanent disability, up to Rs.8,000,000 forGold Card customers and Rs.4,000,000 for our Classic Card customers).



6/22


OMPLIMENTARYOUNGES AT

RPORTS:

Next time you travel internationally, be our privileged guest at CIP LoungeQuaid-e-Azam International Airport Karachi, and Rawal Lounge, IslamabadAirport. Your Askari MasterCard entitles you to a host of complementaryservices including:

Snacks and beverages

Internet, telephone and fax. Newspaper & magazine Flight information

Cellular charger connections.

TRESS FREERAVELING:

When you purchase your airline ticket for international travel on AskariMasterCard, you get:

Up to * Rs.10, 000 insurance cover for baggage delays exceeding 6hours.

Up to * Rs.20,000 as baggage loss claim

*Certain conditions apply

SCOUNT ANDROMOTIONS:

Your Askari MasterCard also brings you a host of special discount andpromotions across Pakistan. Remember to check your Credit Card statemeinserts and our web-site for more information about ongoing promotions

9.2.2 Debit card

Activation/ De-activation

A DEBIT CARD

s Details

t Type: Debit Card.

tive Features:

ClassicCash withdrawal Limit is 50,000, Shopping Limit 200,000 & FundsTransfer Limit 250,000.

GoldCash withdrawal Limit is 100,000, Shopping Limit 250,000 & FundsTransfer Limit 300,000.



7/22


ty:

1. Literate individual customer.2. Having Pak Rupee checking account under the category of Current,Saving, ASDA, Value Plus Accounts (Current & Saving) Basic BankingAccount and Smart Cash etc., with credit balance and 'normal' status,may apply.3. No minimum balance requirements for issuance or retention of the

VISA debit card. An eligible customer may apply for any of the debitcards i.e. Classic or Gold.4. Joint account holders, with the authority to operate the accountsingly, may be issued supplementary card(s). The supplementaryCard(s) may be issued to only those joint account holders who canoperate the account singly with either or survivor option.5. A customer/staff is allowed to retain as many cards as number ofaccounts and is allowed to link multiple accounts with single debitcard.6. Multiple accounts of same customer, maintained at differentbranches of Askari Bank, may also be linked with single VISA Debit

Card. If the customer has an account with other branch (es), theapplication receiving branch must verify & confirm the followingeither through online system or from the concerned branch (es).

Five (05) Years. (New card will only be issued on customers writtenrequest ).

on/ De-on

Through ABL Call Centre by calling at toll free number 0800-00078.



8/22


9.2.3 Personal Finance

One can avail unlimited opportunities through Askari Banks Personal Finance. With unmatched financing features

erms of loan amount, payback period and most affordable monthly installments, Askari Banks Personal Finance mure that you get the most out of your loan. No matter what your need is, Askari Bank has more ways to serve you th

ver before.

Product Featuring:

Borrower:

Facility:

Financing Limits:

Tenor:

Repayment:Markup Rates:

Servicing:

Balance Transfer Facility:

Resident Pakistani Nationals.

Term Finance

Maximum upto Rs. 500,000/. (Clean)Maximum upto Rs. 1 Million. (Secured)

Maximum upto 5 YearsMonthly Installments

Competitive

Available at all Askari Bank branches

Eligibility to Apply:

Age:

Income:

Financing Limits:Employment:

Charges/Fees:

Between 21 to 65 years.

Minimum gross monthly income of Rs. 10,000/- only.Maximum upto Rs. 500,000/. (Clean)

a) Salaried:Minimum length of confirmed service with present employer

is 6 months with a total length of 1 year service.

b) Self Employed:

Minimum 1 year in business.

As per current schedule of charges.

When you are working towards your financial goals, how you borrow can be just as important as how you invest. Thight borrowing options can improve your savings, your cash flow and your ability to take advantage of personal or

usiness opportunities.

So, choose the right options and call us now to enquire about your entitlement amount and exclusive service. At Ask

bank we make every effort to serve our customers with care.



9/22


Not restricted to new financing, under Personal Finance scheme, we offer extended facilities, which are:

Back to Original:

Under this scheme borrower can avail extended amount of finance upto the utilized allocated amount, if his/her

epayments are regular.

Balance Transfer Facility:

t gives the customer the opportunity to pay off his/her outstanding dues on their credit cards or other loans at a rate

nterest much lower than what one pays on them. That not only frees up their credit limit, but cost of servicing the d

greatly reduced.

Computer Loans:

This scheme was launched to promote the I.T. technology in the country. In this regard, we have signed MOUs wit

Multinational companies and large local corporates including schools & colleges.

Dream Life (Financing for Consumer Durables):

We are the financial market player in delivering quality service to customers with highly professional standards. Weoined hands with various Electronic Companies for sale, of the domestic appliances against consumer financing. U

his scheme, Askari Bank is financing products of these companies, which would benefit those people who can only

afford to buy home appliances on installments due to limited resources. In addition to this, we have also signedagreements with other top manufacturers of automobiles for financing of motorcycles to the general public at most

ompetitive rates.

9.2.4 ASKARI MORTGAGE FINANCE

PRODUCTS SPECIFICATION

Ever since the inception of life, shelter has been rated among the primary needs of mankind. Owning a home for o

till remains an exclusive dream for many. Askari Bank has made the realization of your dream to have a house of yvery own possible. Whether you plan to build a house, tailor made to your requirements or buy a constructed house,

Askari mortgage finance enables you to pursue your goal without any problems. Mortgage is a premium home finan

product for customers aged between 23 65 years belonging to the upper, upper middle and middle income groups,esiding in the urban areas of Pakistan.

Askari Mortgage Finance offers you to get Home Loan Financing with five variations:

Build a Home (Tranche Loans)Buy a Home

Buy a plot and Construct



10/22


RenovationBalance Transfer Facility

9.2.4.1 Build a Home:

This type of loan is extended to customers who already own a piece of land and need funds to meet cost of construcproperty on that land. The disbursement of this loan is made in four or less tranches during the construction phasedepending upon the bills of quantity (BOQ) submitted by the customer and the quantity and quality of construction

9.2.4.2 Buy a Home:

As the name suggests, this type of loan is meant for the purchase of an already constructed property.

9.2.4.3 Buy a Plot and Construct:

This loan type is extended for the customers who want to buy a plot and construct a property on that plot. The

disbursement of this loan is made in lump sum for the purchase of plot and then in four or less tranches

during the construction phase depending upon the bills of quantity (BOQ) submitted by the customer and the quanti

and quality of construction done. The bifurcation of limit for purchase of plot and construction will be applicable as

prevailing SBP prudential regulations.

9.2.4.4 Renovation:

This loan is offered to customers who already posses a house and require funds for renovation/ improvement. Disbu

will be made only after customer has provided BOQ and an undertaking for utilization of this facility for the purpos

enovation/ improvement.

9.2.4.5 Balance transfer facility:

This kind of loan is offered to existing borrowers of other institutions, who may want to switch over to Askari BankLimited because of service, pricing or relationship reasons. The loan with the other financial institute should have b

paid in accordance with banks credit history and debt burden requirements. Balance transfer facility is strictly not

allowed for the properties that are still under construction.

Branches Offering Housing Finance:

All Branches in the following cities can be contacted for Askari Mortgage Finance:

Karachi, Lahore, Islamabad, Rawalpindi, Peshawar , Gujranwala & Sialkot.



11/22


General Terms and Conditions:

An Individual must fulfill the following requirements to be eligible for applying Home Loan:

Must be a Tax Payer.

Must have a Valid Computerized National Identity Card (CNIC).Mobile is mandatory. In case of Buy / Build a Home cases, we do not require land line at current or potential residen

ase of Home Renovation cases in absence of PTCL Land line, any mobile or Wireless connection at residence is

acceptable. Extracts of relevant SBP regulations and Banks policy on mortgage financing:

Regulation R-15:

Banks / DFIs shall determine the housing finance limit, both in urban and rural areas, in accordance with their internredit policy, credit worthiness and loan repayment capacity of the borrowers. At the same time, while determining

redit worthiness and repayment capacity of the prospective borrower, banks / DFIs shall ensure that the total month

amortization payments of consumer loans, inclusive of housing loan, should not exceed 50% of the net disposablencome of the prospective borrower.

Banks Policy

The portfolio acquired through Mortgage Finance program shall include properties only in urban residential areas of

major cities. New cities can be added only after setting up verifications & collections infra-structure.

Aggregate debt burden will be considered. Debt burden inclusive of all existing and proposed liabilities should not

xceed 50% of net disposable income OR as per SBP Prudential in force.

Regulation R-18: The house financed by the bank/ DFI shall be mortgaged in banks/ DFIs favor by way of equita

egistered mortgage.

Banks Policy

Lien Marking, Equitable plus Token registered mortgage/ full registered mortgage/mortgage under section 58(f) of

ransfer of property act 1882.

ELIGIBILITY CRITERIA:

Age

Primary Borrowers age

Salaried

SEB/P

Minimum age: 23 YearsMaximum age: 60 Years at maturity

Minimum age: 23 YearsMaximum age: 65 Years at maturity

Co-borrower Only Son and Spouse are allowed as Co-borrower. However, a blood relative



12/22


is allowed in case of joint ownership in property:Minimum age: 18 Years

Maximum age: 65 years

ncome Rs. 35000/- per month

Additional /

Surrogate

ncome Source

1. Rent Agreement has become a major source of additional income of

our applicants. Therefore, to authenticate, all rent agreements will

have to be supported by the title documents of that particular

property.2. The title has to be in applicants name (primary or co-borrower).

3. Any other source of Income which can be verified through

documents.

Length of

Employment

a) SalariedEmployees with a minimum service length of 2 years including

present employer. )Self Employed Professionals

Architects, Doctors/ Dentists, Engineers, Chartered Accountants andConsultants. Minimum 2 years in profession)Self Employed Business Individuals

1. Minimum 3 years in same line of business2. In family businesses only, where a Director was engaged in the

business prior to being elevated to Director, or was made Director at

least a year ago due to educational responsibilities/ engaged in other

family related business, the same will also be considered. Thebusiness in such case must be 3 year old at least, and the Director

applying for loan must have been in the same post for minimum of 1

year.

igible Financing limits under each product category:

oduct Category Minimum limit Maximum Limit

ild a Home (Tranche Loans) Rs. 300,000 Rs. 30,000,000

y a Home Rs. 300,000 Rs. 30,000,000

y a plot + Construction Rs. 300,000 Rs. 30,000,000

novation Loan amount calculation not to exceed the 50% of the total

asset value OR 60% of Assets value, whichever is lower.

icing Criteria (Base rate and frequency of revision)

arkup for Salaried (All Categories) *KIBOR + 4%

ark up for Self Employed Businessmen *KIBOR + 5%

2 month KIBOR ask side average.

OR otherwise according to a corporate deal between Askari Bank Ltd & a corporate entity.



13/22


The rates will be based on a floating rate arrangement wherein the loans linked to 12 month KIBOR will be reafter a 12 month interval based on the calendar year i.e. 1st January of every year till maturity.

CHEDULE OF CHARGES

Processing Fee Rs.6,500/- (Flat) as Per SOC

gal/documentation/valuation/incomeestimation charges

At actual

Enhancement Charges Rs.6,500/- (Flat) as per SOC

Late Payment Charges Rs.750/- per installment

Cheque return charges Rs.500/- per cheque

Premature Termination Charges a) In case of early settlement by the borrower charges

will be applicable in the following manner.

i) 1st Year: Upto 6.5% on outstanding balanceii) 2nd Year: Upto 5.5% on outstanding balance

iii) 3rd Year onwards: Upto 4.5% on outstandingbalance.

b) Upto 11% of the outstanding balance, in case of

balance transferred to other bank, irrespective of thetime period.

Balloon Payment Balloon Payment allowed upto a maximum of 20% of

the outstanding balance in a year. Additional balloon

payments will be upto 6% charges on the amountbeing paid (balloon payment amount).

OCUMENTATION:

ong with a filled out Application Form where all details & mandatory fields duly filled, we will require the followin

cuments:

larieddividuals

1 Attested copy of CNIC.

2 Two passport size photographs

3 Copy of the latest paid utility bill received at the residential address.

4

Employment confirmation letter from the employer mentioning the

length of service, designation, gross salary and additional monthly perks

5 Lass three months original salary slip or attested photo copy

6 Lass six months bank statement

7Copy of the Me documents/other supporting documents of the properly

to be placed with the bank as security.

1 Attested copy of CNIC

2 Two passport sire photographs



14/22


le

oprietorshipncerns

3Proprietorship Certificate from Bank Indicating title & account openingdate

4 Copy of the title documents or mot deed of business premises

5 Copy of the latest paid utility bill reserved at the residential address

6 Copy of the latest bill received at the business address.

7 Lost six months batik statement (business / personal)

8 Copy of the title documents/other supporting documents of the propertyto be placed with the bank as security.

9Copy of the latest income tax return or NTN Certificate or other levy

able payment receipts

rtnership

ncerns

1 Partnership Concerns

2 Attested copy of CNIC.

3 Two passport size photographs.

4Partnership Deed or Bank Certificate Indicating title, account opening

data

5 Copy of title documents or rent dad of business premises

6 Copy of the latest paid utility bill received at the residential address.

7 Copy of the latest bill received at the business address.

8 Lost six moths book statement (business / personal)

9Copy of the title documents/other supporting document of the property to

be placed with the Cash as security.

10Concerns, of the latest income tax return or NTN Certificate or other levy


mited

mpanies

1 Attested espy of CNIC.

2 Two passport size photo graphs,3 Bank Certificate Indicating title & account opening date

4 Copy of the title documents or rent deed of bottoms premises.

5 Cops of the latest paid utility bill received at the residential address

6 Copy of the latest bill received at the boon= address.

7 Last six months bank statement (business I personal)

8Copy of the title documents/other supporting documents of the property

to be placed with the bank as security

9Copy of the latest income tax return or NTN Certificate or other levy


10 Memorandum and Articles of association duly certified by SECP11 Form 29 and Form A duly certified by SECP.

payment Frequency and mode etc.

ual Monthly Installment comprising principal and mark-up according to the amortization schedule based on pricing

nure. The amortization schedule will be revised consequent upon review of the floating rate at the specified interval



15/22


equently Asked Questions:

What is the Mark up rate for Mortgage Home Finance scheme?

KIBOR + 4% for Salaried Person and * KIBOR +5 for SEP & SEB

What will be the loan tenor?

kari Mortgage Finance is available for the period ranging from 1 to 20 Years

What are the minimum and the maximum loan amount that can be acquired?

nimum amount is 300,000 and Maximum amount is 30Million.

What is the Loan to Value ratio? Or how much financing can I get against my property?

an amount calculation not to exceed the 50% of the total asset value OR 60% of Assets value, whichever is lower.

Who is eligible to apply?

ease see the Eligibility Criteria.

Who will assess the value of property?

fferent Qualified and experienced property valuation firms which are on approved panel of Askari Bank Ltd conduoperty valuation.

Will my spouses income also be considered?

s you can also club your spouses income to qualify for higher amount of loan. In this caseyour spouse will be treatrrower.

I live in Karachi and want to Purchase/ Renovate/Construct a house in Lahore. Can I avail your financing fa

s, but certain terms and conditions are applied

I am a property dealer. Will I get an incentive from Askari Bank if I bring in Mortgage customers?

, we do not offer any commissions/ rewards to the property dealers.

. How much will I have to pay for: Loan Processing, Legal Opinion Property Valuation and Income Estimati

ease see the Schedule of Charges.

. Are these refundable, if my loan is declined?

gal Opinion Property Valuation and Income Estimation charges are non refundable, however, the processing fee is ce the loan application is approved



16/22


. I am a Businessman/Self Employed Professional, how will you assess my income?

come will be accessed through Qualified CAs/ Income estimators who conduct this estimation through documentat

siness activity to estimate a minimum income of your business.

. I want to co-own a property with my cousin. Is it possible to avail Askari Mortgage for this purpose?

, only son and spouse are allowed to apply for a Mortgage Finance as a co-borrower.

9.2.5 Ask 4 car

ASK 4 CAR

Features Details

Product Type: Financing for New & Used Vehicles.

New Vehicles:

Mark-up: 18% p.a for 3 Years, 19% p.a for 4 Years & 20% p.a for 5 Years.

Down Payment: Minimum 15% & Maximum 60%.

Charges: As Per "Schedule of Bank Charges".

Insurance: Built in Insurance.

Used Vehicles:

Mark-up: 20% p.a for 3 Years, 21% p.a for 4 Years.

Down Payment: Minimum 30% & Maximum 60%.

Charges: As Per "Schedule of Bank Charges".

http://www.askaribank.com.pk/docs/SOC_2010.pdfhttp://www.askaribank.com.pk/docs/SOC_2010.pdfhttp://www.askaribank.com.pk/docs/SOC_2010.pdfhttp://www.askaribank.com.pk/docs/SOC_2010.pdf


17/22


Insurance: Built in Insurance.

Makes:Suzuki, Honda, Toyota & Hyundai (Please note 800 CC usedvehicles are not allowed).

Vehicle Age: Year of manufacturing not older than 5 years at the time of loan

Ownership Status:Third Registration in the name of AKBL (Registration in the citieswhere Askari Branches are located).

Documentation:

1. Standard Finance Documents.

2. Other Mandatory Documents.

3. 15 Report (Police Clearance Report).

4. Evaluation Report by approved surveyors.

5. Fresh Vehicle ownership certificate from ETO prior to transferin the name of AKBL.

Standard FinancingDocuments

1. Completely filled signed Application.

2. Clear Attested photocopy of CNIC of applicant & references.

3. Attested Photograph.

4. PTCL Bill or Utility bill relevant with the address mentioned onapplication.

5. Post dated cheques.

6. One Year bank statement.

7. Specimen Signature card verified by the bank.

8. Undertaking on signature if signature differs from CNIC.

9. Latest Salary slip.

10. Proof of business & other income.

11. NTN certificate (optional).

12. Bank letter for proprietorship.



18/22


13.Wealth statement required in case of financing of 1.5 M &above.

14. Partnership deed (if applicable).

15. Verified CNIC of the guarantor.

16. Guarantor Net worth Statement (optional).

9.2.6 Askari rupee traveller cheques

Askari Bank Limited has always remained at forefront in introducing innovative and unique products in banking sec

Our financial instruments provide greater financial freedom and security in an unmatched way to our valued custom

Askari Bank offers you its Rupee Traveller Cheques eliminating all financial risks while traveling. So avoid risk o

arrying cash through Askari Banks Rupee Traveler Cheques.

Your Best Travelling Companion

Why Askari Banks Rupee Traveler Cheques ?

1. Free issuance

2. Free encashment

3. Profit will be offered at the time of encashment*

4. Nationwide acceptability5. Facility of encashment in cash to the purchaser

6. Facility of encashment through clearing



19/22


7. No purchasing limit8. Valid until encashed

9. Easily transferable

10. Account relationship not mandatory11. Fastest refund procedure in case of loss / theft

12. Safe & secure mode of funds transfer

13. Available in Rs. 10,000 Denomination at all branches of Askari Bank

14. Perfect subtitute of your cash

9.2.7 Askari Touch N Pay

Electronic Bill Payment Services

hrough this the customer can easily pay their bills

utility bills

through this you can pay different utility bills of kesc, lesco, pepco,and ptcl etc.

mobile phone bills

ustomer can pay and rechrge their postpay and pre paid connections of mobilink Jazz,ufone , warid , ant telenor e

funds trasferr

askari bank limited and 1 link members banks funds transferr facility available through askari ATMs

9. 2. 8 Cash Management Services

Askari Cash Management Services, aimed to effectively manage the accounts receivable portfolio of medium and la

orporate entities. While this service helps the corporate entities to improve their liquidity, due to our well diversifiebranch network.

mportant Features

The service primarily aims at providing clearing, collection and cash / transfer facility to corporate, under one resou

enter, which will handle the process through the branches and provide adequate reporting to the corporate clients, ovarious aspects of their accounts receivable portfolio, every month.



20/22


The high difference between lending and deposit rates indicates that the depositors are not getting due returns, ascompared to huge profits being earned by the banks. Indeed, the lending rates have increased and deposit rates hdecreased over the last few years.

Diversified portfolio due to huge customer base enables bank to reduce their dependence on few or single borrowe

The spread (higher lending rates and lower deposit rates) is much higher in which of the following country?

Sri Lankandia

Pakistan

Bangladesh

Providing access to purchasing power to the middle class consumer has been the most significant

achievement of this product class

Consumer finance is an established financial product across the globe, particularly in mature economwhere it constitutes a significant portion of banks lending portfolios

The concept of consumer financing is based on the need for an institutional arrangement that providconsumers with financing support to enhance their consumption and, as a result, improve their standof living

The net wealth, or financial position, of the household sector is therefore estimated on the basis ofselected indicators including trends in personal deposits of the banking system, individual investmenhe stock market, and growth in personal investments in National savings Schemes (NSS

Banks have a vital role to play in credit expansion and Pakistani consumers are now faced with more consumer bankopportunities and options than ever before. I think as the consumer banking market grows, so will the sophisticatio

Benefits of Consumer

Finance

Rising standard of living

Forced savings

Help consumes meet emergencies

ncrease in demand for physical

Goods

meritsFinance purchases out of future income



21/22


Raise standard of living

Financial emergencies

No borrowing from friends or postponing of

present consumption

Higher demand for physical goods and

Services

PROCEDURE FOR AVAILING

CONSUMER FINANCEa) Pre-sanction stage-. Submission of proposal- On a prescribed format

upplied by a financier. Contents-Personal profile

Employment credentialsFinancial aspects

Product detailsFinancial requirementsGuarantor profile

Enclosures required

5 Conclusion:

The real beneficiaries of consumer finance are the people who did not have capacity

o purchase expensive household items in a single go but could afford them because

of consumer finance, the commercial banks that have been earning large interest andhuge returns on their investment in consumer finance and the economy that got

mpetus for growth. The point of concern is that consumer finance is helpful only for

hose who are to some extent affluent to opt for it.

n case economy is to sustain growth through consumer finance as one of themportant factors of growth, then income inequalities should be bridged and income

evel be increased to develop paying capacity of large number of consumers. Inflationhould be contained and a strong broad based middle class be built. Unless these

mperatives were met, it is doubtful if consumer finance based on weak middle class

upported by remittances can really play the same role that it is played by strong and

affluent middle class both in developed economies and to some extent in emerging economies



22/22


eferences

http://www.kpmg.com.pk/industries/ind_bankingsurvery.htm

Consumer Banking Service

Documents

Transcript of Consumer Banking Service