Financial Literacy Unit 2: Various Financial Institutions

Flashcards for reviewing key vocabulary related to financial institutions and services.

Financial Institutions

Financial entities that provide a range of products and services such as banking, insurance, and investment management.

Bank

A financial entity authorized to accept deposits and provide loans, also offering services like wealth management and currency exchange.

Retail Banks

Banks that serve individual customers, offering services like savings accounts and personal loans.

Commercial Banks

Banks that provide financial products and services to businesses and corporations, including trade financing and securities.

Wholesale Banks

Banks that offer services involving trading financial products between financial institutions, government agencies and other large organizations.

Wealth Management

Financial service focused on managing the investment needs of high-net-worth individuals.

Agency Services

A bank acting as an intermediary between customers and other organizations, facilitating payments and collections.

Utility Services

Services offered by banks that provide convenience and security, like safe deposit lockers and letters of credit.

Online Banking

Banking services delivered through digital platforms, offering account access and transaction capabilities remotely.

Mobile Banking

Banking services conducted via mobile devices, enabling balance checks, transactions, and payments.

Priority Banking

Specialized banking services for high-value customers based on average balances and relationship tenure.

Savings Account

An account for saving small amounts with interest, facilitating secure storage and earning potential.

Current Account

An account used for frequent transactions, typically not earning interest and used by businesses.

Fixed Deposit

A deposit held for a fixed term with a fixed interest rate, providing higher returns for longer durations.

Recurring Deposit

A deposit where regular payments are made over a set period, accumulating principal and interest.

Non-Banking Financial Institutions (NBFCs)

Companies that provide banking and financial services, but do not hold a banking license.

General Insurance

Protects against risks other than life. It could protect your health, vehicle, home, property, and other belongings against accidents and disasters

Life insurance

Financial instrument which gives monetary benefits in the event of the insured person's death.

Digital Lending

The process of managing credit instruments such as loans and credit cards using digital channels from beginning to end.

Digital Wallet

Allow one party to transfer digital currency units for products and services from another party.

Agency Services

The bank acts as a go-between for its customers and government and business organisations