Digital
Banking &
Introduction
to Fintech
Masterclass
What is banking?
LECTURE
SUMMARY
What did we cover in this lecture?
Explored the fundamentals of banking
•
Banking is an ancient industry – with the
earliest recorded instances of banking going
back to Babylonian times ~1,800 B.C
•
Banking in a single sentence is: “a medium for
financial exchange”
•
The core of banking is about receiving deposits
and providing loans. This is the fundamental
of banking
•
When depositors provide funds to a bank, they
are paid interest. When a borrower obtains
funds from a bank they pay interest (or a fee)
for accessing those funds
•
Liquidity is the concept of a bank being able to
meet the demands of borrowers who may
want their funds returned
•
There are generally 3 types of banking
business models: Retail Banking, Commercial
Banking and Wholesale Banking
•
Banks are an important part of our
economies as they provide credit which helps
our economies grow. In addition they are an
important part of the payments system.
Taught by:
Rian Chapman
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