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BPS: Financial Product&services (Payment/ Fund Transfer Services…
BPS: Financial Product&services
Types of Banks Licence
Wholesale Bank Licence
Offshore Bank Licence
Full Bank Licence
Deposit Services
Fixed Deposit Account
Time/ Term Deposit
Fixed period of time with fixed interest rate
Penalty for early withdrawals
Benefits:
Locked interest rates if interest rate was to drop
Auto renewal & auto credit of principle & interest
Split large amt into different time deposits (to earn more interest?)
Opening a fixed acc nid a min. deposit
Deposit period: 1 to 36 months
Current Account
issued with a cheque book
Benefits:
Convenient payment by writing out a cheque
No charges on electronic services
Hybrid Acc (both functions of CA & saving acc)
Savings Account
To set aside $ for future use/ emergencies
Operated thro statement of Account or savings passbook
Plastic Card Services
Debit Cards
Signature based
VS Credit Card
No min income requirements
no risk of overspending
no monthly bills
PIN Based
NETS EFTPOS
Plus/ interlink ATM Card
Plus/Interlink debit Card
ATM cards provided & debit amt st from acc
no credit provided
Credit Cards
Free credit period provided to customer before payment deadline (making use of free financing)
HIGH interest rate: 2% per month, 24% p.a.
Customer is billed monthly for credit card expenses, MIN requirement to be paid for each month, remaining balances 'roll over' to nx month
The process
5 steps, Cardholder, merchant, acquiring bank & card-issuing bank involved
Benefits to CARDHOLDER
safety of reduced cash handling
Track monthly expenses
enjoys free credit period
Benefits to RETAILER
More convenient (Increase sales)
Reduced cash handling
Guaranteed payment upon signature
Payment/ Fund Transfer Services
Interbank GIRO (IBG)
Traveller's cheque
Standing Order
Mobile Payment via Connected Bank Account
NETS PAY
Pay Now
Telegraphic Transfer (TT)
Demand Draft (DD)
Mobile payment via Linked Debit/ Credit Card
NETS PAY Prepaid Wallet
Paylah
Also for users who dont have a dbs/posb account
transfer/ receive funds thro hp
Nid to top up wallet if using other bank acc
OCBC Pays Everyone
targets only at OCBC customers
transfer using emails/ facebook ID
Cashier's Order
Mobile payment via Mobile Wallet
Apple Pay
Google Pay
Financial Technology
Critical success for FINTECH initiatives
Consumer Credit Services
SIMILARITY b/w overdraft & credit line
Flexible usage & repayment
Automatically restored when payment is made
DIFFERENCES b/w overdraft & credit line
Overdraft
No annual fee payable
No min. monthly payment (as long as outstanding balance is within agreed limit)
Credit Line
Annual fee payable
Min. monthly payment on o/s balances
Revolving Credit Line
Term Loans
Housing Loan
For purchase of residential properties, secured by property to be purchased
Requirement : Sum of loan tenure & age of borrower (<65 yo)
HDB (<20yrs)
Private Property (<30 yrs)
Loan to value ratio : Financing % of housing loan
Assessed value : value of property determined by professionals
No o/s housing loan, 25% downpayment, 5% cash, 20% cash/CPF.
1 housing loan o/s, 55% downpayment, 25% cash, 30% cash/CPF
2 housing loan o/s, 65% downpayemnt, 25% cash, 40% cash/ CPF
Personal Loan
Min. income 20k pa, loan amt. 5k to 50k, 2x to 4x of monthly income, repayment period of 1 to 5 yrs
Renovation Loan
Min. income of 24k pa, loan granted up to 6x of monthly income (max. 30k)
For longer borrowing & larger amt
Types of Investment Services
Factors to consider in selecting an investment
Intro. to Insurance
Main types of insurance
Insurtech
Regulations