Because of its complexity, the banking world is still becoming a warm topic for discussion. At a public lecture entitled “Introduction to General Banking” (24/04/14), Jeannette Tampi, AVP of Retail Banking and Wealth Management HSBC Indonesia, explained everything about banking, especially in Indonesia.
Bank as one of the financial institutions is an institution that has functions to accumulate and distribute funds of the society. The other financial institution type is non-bank financial institutions. The fundamental difference between bank and non-bank is from their way to raise funds. The Banks raise funds directly from the public.
In addition, the bank also acts as a payment facilitator. “In this case, the bank is responsible for facilitating the payment mechanism,” said Jeannette. From the side of the product, the bank generally has products that are capable of answering the needs of funding and lending.
One thing which is very important in running the business of banking is the application of the concept of Know Your Customer (KYC). This concept requires the bank to make a transaction in face to face forms with consumers. This is done to avoid money laundering that may be performed by the customers and also simultaneously performing risk management. It is very important for the bank to execute this concept to know its customers’ profile.
Sources: Nadia/FEB
