The services offered by commercial banks can be broadly classified into 4 parts. They are
Payment Service: The Payment Service is the backbone of the entire money flow in an economy. Previously the payment system was supported by Cheques, Demand drafts etc which have now been replaced with direct online money transfer with the evolution of technology.
Financial Intermediary: This is one of the oldest functions of the Bank which specifies accepting deposits from customers and then lending these funds to borrowers. This is the main core business of the Banking system and will continue as long as the banking system exists.
Financial Services: Financial services include new services which were launched by different financial institution with time. These services include investment banking, foreign exchange business, line of credit services, wealth management and broking services. These services generate income for the commercial bank in the form of commissions etc. which is also termed as Non-Fund income for banks.
Ancillary Services: Other services that the Banks offer to the common men along with the necessary banking services. These ancillary services form a very minuscule of the services offered by the banks.
Typical ancillary services include safe deposit lockers for gold, cheque pick up facility, door step banking etc.
Traditional services offered by different banks
New services offered by banks
Banks are nowadays offering different new services to attract more customers and grow their business. The other services offered by the Banks are increasing very fast and now accounts for a large portion of their income.