What is Transaction Banking?
“Transaction banking” is a specialized banking service that focuses on providing various financial transaction services to corporate and institutional clients. These services include cash management, trade finance, custody services, and treasury services.
The main objective of transaction banking is to facilitate financial transactions between businesses, individuals, and financial institutions. The services provided by transaction banks help companies to efficiently manage their financial operations and optimize their cash flow.
1) Cash management is one of the key services provided by transaction banks. This involves managing a company’s cash flow, including managing its account balances, making payments and receiving collections.
2) Trade finance involves providing financing solutions to facilitate international trade transactions.
3) Custody services refer to the safekeeping and management of a company’s securities and other assets.
4) Lastly, Treasury services involve providing advisory services to corporate clients to help them manage their financial risks.
Transaction banking has become an important part of the banking industry as it enables businesses to manage their financial operations effectively and efficiently.
With the growth of international trade and globalization, the demand for transaction banking services has increased significantly in recent years.
