Financial institutions play an extremely important role in economic development. Financial institutions cater to important needs of society such as taking care of small savings at reasonable rates. Everyday working men and women have the option of putting their savings into a number of alternatives such as Government small saving schemes, deposits into a saving account provided by their bank, recurring, deposits, time deposits and also the alternative option of investing in mutual funds or stocks.
Financial institutions also undertake modern functions that could not have been done 20 years or so ago. The relatively new invention of Internet banking allows customers to access their saving and current accounts, manage their money and even make payments without ever having to set foot in the bank’s building. This and ATM’s have completely revolutionised the way that people can access their money. Online payments can also be made which saves the customer’s time and energy. In the modern day economy when people with hectic lifestyles don’t have the time to stand in payment queues all day, financial institutions can only be commended for providing this convenient way of payment.
Financial institutions must also offer an extremely efficient service by developing themselves to make the best use of the credit in their systems. A decent financial institution must make sure that they cater to the all the needs of investors by making high amounts of capital for the big and expensive projects that are being undertaken by the industrial and service sectors. Although it is not just the big people that the financial institutions need to be backing. The small companies and independent businesses must also have credit backing them if they are to expand and grow for the good of the country’s economy. This makes the subject of credit availability by financial institutions an extremely important issue.
Financial institutions also undertake modern functions that could not have been done 20 years or so ago. The relatively new invention of Internet banking allows customers to access their saving and current accounts, manage their money and even make payments without ever having to set foot in the bank’s building. This and ATM’s have completely revolutionised the way that people can access their money. Online payments can also be made which saves the customer’s time and energy. In the modern day economy when people with hectic lifestyles don’t have the time to stand in payment queues all day, financial institutions can only be commended for providing this convenient way of payment.
Financial institutions must also offer an extremely efficient service by developing themselves to make the best use of the credit in their systems. A decent financial institution must make sure that they cater to the all the needs of investors by making high amounts of capital for the big and expensive projects that are being undertaken by the industrial and service sectors. Although it is not just the big people that the financial institutions need to be backing. The small companies and independent businesses must also have credit backing them if they are to expand and grow for the good of the country’s economy. This makes the subject of credit availability by financial institutions an extremely important issue.
