002 Modern banking services

							                          17. MODERN BANKING SERVICES

Besides basic bank services such as running accounts, offering saving opportunities, loans or
FX services banks provide several „modern“ services. Technical discoveries and
improvements and extension of the internet communication allowed banks to offer their
customers better and more convenient services:


                                          MODERN
                                          BANKING
                                          SERVICES




  TELEPHONE           INTERNET          CONSULTANCY          INSURANCE         INVESTMENTS
   BANKING             BANKING            SERVICES            SERVICES




1. Telephone banking

You can manage your financial operations from your home. After signing a contract in your
bank you get a log-in number or name and a password for communication with your bank.
Then you can use telephone orders for payments, you can check the balance or movements on
your account.

2. Internet banking

the most convenient way of managing your financial operations from your account. You just
need internet connection and sometimes a mobile phone to check the balance and movements
on your account, to transfer money from your account, to order services, to get an e-statement
or to make a steady collecting demand. You can also re-charge the credit on your mobile
phone or send your bank consultant a request for various types of contracts.

How to use internet banking?
1. Go to your bank and sign an agreement of internet banking
2. Get an access to your account and a password
3. Open the web page, log in (sometimes you need a mobile phone for confirmations)
4. Choose a financial operation and make it online
5. Confirm the operation with your password (some banks will confirm it via sms)
6. Log off

If you follow safety rules, it is highly protected against internet criminality. In some banks
you confirm all internet transactions via your mobile phone which makes them safer.

3. Consultancy services

Most banks offer their customers consultancy services to help them with their investments,
give them advice about insurances, mortgages etc.
4. Insurance services

You never know what future will bring you. Therefore people insure themselves, their
properties, their houses against unpredictable events. Banks offer many types of insurances,
for example:


                                      INSURANCE




    LIFE              PENSION           ACCIDENT            TRAVEL          HOUSEHOLD
 ASSURANCE          INSURANCE          INSURANCE          INSURANCE         INSURANCE




a) life assurance
If you died or get a serious illness, your family would stay without finances you bring home.
That is why people insure themselves. Life assurance is usually a long-term insurance (over
20 years) and often is accompanied with an insurance against a serious illness or an accident.
The money you are insured for depend on your monthly payments. In case of your death, your
family will get the money from the insurance and in case that nothing serious happen to you,
you will get a certain amount of money at the end of the contract. On the other hand, if you
need the finances you regularly saved on this assurance, it is difficult or disadvantageous to
back out of a contract.

b) pension insurance
When you retire, the state pays you a pension according to your previous income and the
number of years you worked. However, the difference between your income and the pension
may be high, so people usually think of their future in advance. Pension insurance helps them
to save some extra money for their retirement and the state supports it. Based on long-time
regular payments you save money and get a state benefit together. You usually cannot
withdraw your money easily before you retire and if you do it, you will lose the state benefit.

c) accident insurance
You can insure yourself for a case of broken arm, leg etc. If you have an accident, the bank
will either cover a part of expenses or pay you a certain amount of money. Banks or insurance
companies also offer insurance against damages you cause by your activities.

d) travel insurance
Since the velvet revolution in 1989 people have been able to travel freely all round the world
which brought to expansion of the travel industry. However, accidents may happen anywhere
in the world so it is good to insure yourself to avoid high payments for a doctor, hospital etc.
Some banks offer a travel insurance in your bank cards, if you do not possess any, you should
insure before your journey abroad. This insurance helps you to cover these expenses and in
case of a death accident the expenses for the conveyance of your body will be covered. Not
having travel insurance while being abroad may bring you and your family into serious
financial trouble in case of your accident or illness. The insurance costs 10-25 CZK / a day.
e) household insurance
Accidents can happen not only to you but also to your house, garden or other properties.
Heavy rains, floods or fires may happen unpredictably and you may lose everything. People
insure their homes against those situations. Household insurance is also good against burglars
so if you ensure your house properly and someone breaks-in, the insurance will cover a part of
the loss you suffered.




5. Investments
If you have some extra money you do not have to use just at the moment, you can invest
them. Banks will help you to make a correct and most advantageous decision. They will offer
you not only saving accounts, deposit accounts or building savings, but you can invest your
funds also into shares, bonds or stocks. Banks work only as intermediaries but their service
can be quite useful for you.