BANKING SERVICE

Banks offers services to the general public as well as to business.

BANKING SERVICES TO PERSONAL CUSTOMER

• They receive money from the general public and the either hold it in deposit, making it available to the person who as deposited it, or lend it at interest to people who wish to borrow
• They regularly send a statement of account ( = estratto conto)to a current account holder, recording all payments into and from is current account for a given period of time.
• They exchange money from one currency to another.
• They advise customers on the best way of investing their money.
• They allow the bank account holders to pay by standing orders ( = ordini permanenti) and direct debits ( = addebiti diretti).

A standing order is used when a person authorises the bank to make regular payments of a fixed amount from his current account, e.g. payments for insurance, mortgage, etc.
Whit a direct debit, money can be taken directly out of a customer’s current account for payments of varying amounts, e.g. telephone and gas bills, subscription, etc.

• They provide cash card or switch card (= bancomat), credit cards, and cheque books.
• They lend money through loans, mortgages and overdrafts (= fidi). An overdraft is a loan made by a bank to a current account holder so hi can take out more money than he has in his account up to an agreed maximum. Also, he must pay an interest on the sum received.

BANKING SERVICES TO INTERNATIONAL TRADERS

In addition to the services provided to the general public, banks also offer the following services to companies:

• Payments: they arrange for payments for all national and international trade transaction.

• Export finance: they can provide exporters whit the necessary finance to carry out a large other they may have received from a foreign investor.

• Credit finance: banks can intervene to give an exporter credit in advance if, for example, the importer is following a long-term payment scheme, and the exporter cannot wait for the money.

• Factoring (= cessione dei crediti da recuperare) whit this services the exporter sells all his trade debts to a bank. This arrange for the debts to be collected and for the exporter to be paid

• Leasing: instead for buying expensive equipment, property or vehicles, a company can lease (or hire) theme through a bank. The bank pays for what the company needs and leases it out to it. The company will arrange for monthly payments over an agreed period. The most evident advantages of leasing are that lease rent is tax deductible, and that a company can easily have new equipment.

• Advice: they provided advice on investment prospects in international finance markets as well as advice on the Stock Exchange.