You are always curious to know the difference between a regular bank account and an overseas bank account? In this tutorial, RemitX’s professionals will explain the important aspects of regular and overseas bank accounts. For better understanding, you need to know the details. In this globalized world, a large number of banks have emerged, and the banking industry has undergone a change with a very competitive environment.
Today banking is one industry where product and service innovation has given a substantial advantage to domestic players. Even more, access to low-cost funding lowers the overall cost of funding and consequently enhances the Banking company. After all, this will provide a major benefit to consumers. International banks would prefer to get more fee-based services, in this competitive environment. In addition, retail banking does not rely much on fee-based services.
Major Differences Between Regular and Overseas Bank
1. Customer Service Excellence
With a foreign bank’s services, you will get excellent customer service. The quality of customer care is satisfactory in all aspects. Their financial ecosystem maintains a high standard of customer service.
2. Effects of Talent Pool in Banking
In terms of the talent pool, foreign players have been providing customer service over the years. They are able to structure products and services in an innovative way. This is because adhering to compliance requirements has set the model for Indian banks. As a result, India’s banking ecosystem owes a lot to these players.
3. Foreign Banks provide the Regulator with advice
This aspect is really one of the most important contributions made by foreign banks to the banking industry. In this way, they do interact with the regulator, which includes advising them on how to strike a delicate balance.
This balance is between supervision and business that need to draw on their experience in other markets. Furthermore, this contribution will become even more significant in the future. In other words, foreign banks have contributed significantly to market changes and regulations.
4. Potential Reckoning on the Derivative and Foreign Exchange Markets
Due to the presence in international markets, and corporate and institutional banks, they are able to seamlessly provide treasury services. If we talk about trade services to corporations, you can see the expansion of the foreign exchange and derivatives market.
5. Talent Exodus to Global Insourcing Centers Likely
Some of the foreign banks would still like to use the talent pool. They have significantly more resources to lure talent away from the onshore banking industry to its centres. So this may lead to an increase in the cost of banking specialists.
Even more, sharply raises the cost of labor for onshore banking operations. But in no way is the cost per employee for different onshore banks decreasing. In other words, we can say this will only make matters worse in the long run.
Final Thoughts
In conclusion, there is a need for the appropriate level of competition in a market economy. This is because the presence of foreign banks helps to raise the bar for performance in the banking industry. This will result in a broader financial sector that has always prospered when foreign banks perform well.