Banking refers to the system of financial institutions, such as banks, credit unions, and other financial intermediaries, that provide various services related to money management, lending, borrowing, and investing. It encompasses a wide range of activities aimed at managing financial resources, facilitating transactions, and offering financial products and services to individuals, businesses, and governments.


What is Banking ?

Banks borrow money from a set of individuals or entities and lend it to a different set of individuals or entities. They are licensed under the law to carry on this business and also offer payment systems through facilities like cheques, credit cards and internet banking.

When a bank accepts deposits, it is a borrowing for them. When they give loans for various purposes, it is lending. The difference between the interest it earns on loans and the interest it gives on deposits, less expenses, is its profit.

History of Banking

Early Banking Systems

Banking traces its origins to ancient civilizations where lending and borrowing occurred. Early banking systems evolved in Mesopotamia, Egypt, and ancient Greece, primarily focused on grain loans and trading.

Development of Modern Banking

The Renaissance period marked a significant shift in banking with the emergence of modern banks in Italy, including the Medici Bank, pioneering various banking techniques and systems.

Types of Banking

Retail Banking

Retail banking caters to individuals and small businesses, offering basic financial services like savings and checking accounts, loans, mortgages, and credit cards.

Commercial Banking

Commercial banks serve larger businesses, providing a wide array of financial services, including loans, credit lines, and treasury management.

Investment Banking

Investment banks specialize in raising capital for companies, facilitating mergers and acquisitions, and offering advisory services.

Central Banking

Central banks regulate the money supply, set interest rates, and supervise commercial banks, aiming to maintain stability within the economy.

Banking Services

Deposit Services: Banks offer various deposit accounts like savings, checking, and term deposits, allowing customers to save and earn interest.

Lending Services: Lending services include providing loans for various purposes, such as personal loans, mortgages, and business loans.

Payment Services: Banks facilitate transactions through payment services like credit/debit cards, online transfers, and mobile payments.

Our Banking Products

a) Loans

A loan is money you borrow which has to be repaid with interest. The interest rate and tenure of the loan, as well as the repayment schedule are pre-decided between the borrower and the lender. Most loans are given for a specified purpose and against an asset as a collateral.

Personal Loan

Personal Loan is an unsecured loan (short term or long term) given by a bank or NBFC given to meet the personal needs of their customers.

Home Loan

You can take a loan to construct or buy your dream home. The bank lends you the money with the property you are acquiring as collateral.

Gold Loan

You can get a gold loan by offering your gold or gold jewellery as collateral. The amount of the loan is related to the value of the gold.

Car Loan

Banks lend you money to buy a car. You can buy a new or used vehicle and it will serve as the collateral for the loan.

Short Term Loan

Short term loans are loans which as the name indicates come with a shorter tenure. Usually, the duration for a short term loan is one year or less.

Property Loan

You are in need of money and own property? You can take a loan by mortgaging your property to meet your financial needs.

b) Credit cards

Credit cards a good alternative to cash for making transactions both online and offline. The advantage is that you can make purchases even when you do not have sufficient funds in your account and pay the credit card bill later, giving you a credit period between two to seven weeks usually.

Credit card spending gives you cashbacks and rewards too. Often there are discounts and deals for specified credit card transactions offered by the seller. At Fincover, we help you choose the best credit cards available in the market from India’s leading banks.

Banks perform various functions, including accepting deposits, lending money, facilitating payments, and offering financial advice and services.
Technological advancements in banking enhance convenience, accessibility, and speed of transactions, ultimately improving the overall customer experience.
Financial regulations ensure stability, integrity, and accountability within the banking system, safeguarding against risks and protecting consumers' interests.
Central banks control inflation by adjusting interest rates, managing the money supply, and implementing monetary policies aimed at stabilizing price levels.
Banks facilitate economic growth by providing funds for investment, supporting entrepreneurship, creating employment opportunities, and fostering innovation.