The Most Difficult Interview Question For Banking You Should Know

Don’t be caught with the most difficult interview question for banking. Interviewers are not monsters to be scared of. They are assigned to perform the task of choosing the best person fit for the job. Tricky questions are actually teasers for them to know how you cope with pressures because the banking industry is a complicated arena of services, personalities, financial corporate players, systems, policies and regulations, among many others.

Nailing the most difficult interview question for banking seem to be every applicant’s concern. There are already a lot of insider secrets on how to succeed at interviews, ebooks, websites, and a whole lot more of resources for the interviewee to exploit. There are actually a myriad of approaches to overcome the most difficult interview question for banking. All it takes is for you to go beyond the confines of your comfort zone and exert more efforts to turn this gruelling interview into an opportunity for you.

Possible Difficult Questions And How To Answer Them

Many people who have gone through interviews find the simple and easy questions to be the most challenging – with worries of giving a too plain answer. It only takes practice, and tactical strategy to counter this.

1. Say something about yourself

Reply to this by highlighting your good qualities that you have spelled out in your resume. Focus on the qualities that fit into the job. Keep your answers brief and concise and interesting enough to hold the interviewer’s attention.

2. What is your most undesirable weakness and how will you overcome it?

Do not admit directly your weakness as this might jeopardize your chances. Instead, pacify the interviewer by demonstrating that you are aware of this weakness and you are trying to ameliorate yourself from it. The safest way to answer this it to simply cite a flaw rather than a weakness.

3. What was biggest challenge you faced in your career and the intervention you made?

Be critical when answering this question. Again, this might bring you down. Elaborate how you were able to manage and get past through it successfully. Do not give the impression that you are prone to mistakes.

4. Do you believe that you are the right person for the job?

Do not answer with yes or no. Instead highlight your best qualities, job experiences and attitudes relevant to the position. Always make sure that the reference point is the post you are applying for.

5. How much are you worth (salary-wise)?

Do not over rate or under rate. The best thing is to base your salary range on standard industry rates. Indicate your openness and flexibility to negotiations rather than demanding.

Do what it takes to make it easier for you and don’t get stumped by the most difficult interview question on banking. Be prepared beforehand by knowing and understanding these questions and learning how to answer appropriately. Practise and master the questions, as well as the answers.

The Importance Of Quality Banking Software

Perhaps as never before, the necessity for excellent banking software has become evident. Retail banking requires a client-focused approach that will attract new customers and maintain them in a long term business relationship. One way to ensure customer satisfaction has been to guarantee rapid response to questions as well as information-gathering for business transactions. New banking software technology can provide broad retail functionality while it supports various multi-channel models simultaneously. Scalability and resilience are also important features in quality software for banking needs. New core banking applications need to be able to address and support merger and acquisitions activities.

A new concern has been raised by the recent financial collapses within the banking industry. Astute attention to collateral management might have played a positive role in averting some of the humiliating losses that occurred and adversely affected so many smaller banks and loan institutions as well as the customers they represented. Quality banking software is being developed to include systems that monitor collateral descriptions and types. It will have the capability of maintaining customer information, collateral data, and credit count relationships. This will be a significant part of any core banking application program.

Excellent financial software is also available for corporate and correspondent banking requirements. This software can introduce new business models as it responds speedily to ever-changing market conditions. It can reduce costs and identify and manage the risk factors at work, as well. In collateral management, this feature will assist in recognizing collateral shifts in value before they can cause significant damage. An excellent banking computer program will be flexible enough to include new products as they become available and should improve the overall efficiency of the banking business. All of these improvements should add value to the customer relationship which, of course, is paramount.

When one thinks in terms of universal banking, the amount of information that must be gathered, processed, re-calculated regularly, and stored is mind-boggling. More and more banks have chosen to simply out source some of this mass of data collections, including information in collateral management, rather than handle it in-house. New technology will allow for broader functionality in the banking service. Various different kinds of banking products will be able to move across all kinds of channels, especially on the international level. This agility will enable banks to compete with the large international financial institutions that venture into their markets.

When considering the best in banking software, one must look at its “functional richness” as well as its scalability and flexibility. It must be adaptable to the latest in open technology, and it should include a system- connectivity with collateral management. Customers today want as close to real-time views as possible. They want quick access to their counter-party’s collateral and exposures. The ability to function with broad and sweeping informational strokes will strengthen the attractiveness and competitiveness of banking operations for the approaching years.

Skye Bank may opt for ‘International Banking’ License

In view of emerging developments in the banking industry in Nigeria, with the recent guidelines published by the Central Bank of Nigeria (CBN) seeking to categorize banks into three different cadres- regional, national and international banks, our investigations revealed that the Board and management of Skye Bank may seek the international banking license.

The Bank currently has three foreign subsidiaries within the African continent, namely: Skye Bank (Sierra Leone) Limited, Skye Bank (Gambia) Limited, and Skye Bank (Guinea) Limited.

The CBN, in its recent release directed banks to submit their individual plans for their new banking models 90 days from October 4, 2010 (i.e. on January 3, 2011), on account of the repeal of the Universal Banking Model (one-stop shop financial services supermarket) which banks in Nigeria had operated inthe past few years.

In a recent special release to all banks and the general public, with the title “CBN Scope, Conditions and Minimum Standards for Commercial Banks Regulations No. 01, 2010”, the minimum capital requirement for banks seeking ‘national banking license’ was pegged at N25 billion, which was the minimum capital for the recently repealed Universal Banking license. In like manner, the CBN stated that the minimum capital for banks seeking international banking license is now N50 billion.

Skye Bank Plc is believed to likely seek the international banking license, considering that after raising additional capital of about N12 billion recently via a special placement, its capital rose to about N99 billion, which is approximately 100% above the minimum N50 billion capital requirement for international banks. This is in addition to the Bank’s three foreign subsidiaries, which the Bank is likely to keep, in order to remain internationally competitive.

Skye Bank, which has good reputation for supporting businesses, especially through structured finance in critical sectors such as manufacturing, power, oil and gas, construction, transportation, hospitality, education, housing, agriculture, maritime/shipping etc, is expected to continue its tradition, in addition to seeking to up-tier its business focus in favor of the corporate segment.

The Bank recently financed the ultra modern Beloxxi Industries Limited, the biggest indigenous biscuit manufacturing company in Nigeria today, which is located at Agbara, Ogun State.

It also funded projects such as Independent Power Projects (IPPs) in the South-South and North-West, Steel Mills in various parts of the country, fertilizer importation, ultra modern hotels in Lagos and Port Harcourt, private schools in Lagos and Abuja, housing schemes across Nigeria, West Africa’s leading cocoa factory, several oil and gas exploration and production installations, various vessel acquisitions, clearing and forwarding agency activities, etc.

Skye Bank is also committed to encouraging the Nigerian entrepreneurial spirit, having accessed significant funding through the CBN-led Commercial Agriculture Guarantee Scheme (CAGS) for subsequent on-lending to customers. The Bank equally partnered with Bank of Industry (BOI) in the disbursement of funds under the Power & Manufacturing Fund. It was also appointed among only four banks as a Primary Lending Institution (PLI) under the Cabotage Vessel Financing Fund (CVFF) Scheme by Nigerian Maritime Administration & Safety Agency (NIMASA).

Analysts suggest that the Bank would continue to leverage its well-acknowledged cutting-edge Information & Communication Technology (ICT) infrastructure for deployment in the areas of revenue collection, payment systems, and various e-banking platforms.

FOR MORE INFORMATION CONTACT
Head Office: Skye Bank Plc.
3, Akin Adesola Street, Victoria Island, Lagos.
Tel: + 234 1 2701600
Email:
www.skyebankng.com

The currency war and its effect on the banking system

The currency war and its effect on the banking system will be determined after the meeting in Washington is concluded. With the Chinese president meeting with President Obama in the White House, the hot topic is trade and the dispute over currency manipulation.

What is apparent to the world is that both nations are currently, and have in the past, manipulated their currency value to favor trade for their respective nations. This has not stopped both nations from blaming each other on this topic. The US has been a world power for over 100 years now and has used a heavy stick for most of it. Congress still thinks this approach will work and are furious with China for not giving in on this matter.

Congress has gone so far with this attitude that they are debating legislation demanding punishment against China for manipulating their currency and making it harder for US goods to be sold in China. This big stick, like the one Teddy Roosevelt used when he was a Rough Rider, will not work any longer. China has the economy with double digit growth, while America is new double digit unemployment.

The current bank rates in America are near record lows while China has to raise their interest rates to stave off inflation. This, along with their military power, America needs to tread cautiously and not like a bull in a china shop.

China has asked to be treated as an equal. If this does not occur, then the currency war and its effect on the banking system in America will not be favorable for our economy or the world. Obama, put the stick down and be the salesman America knows you are. It is how you got into the White House.

We strive to bring you the latest and most accurate data possible from the home sites of the financial institutions we name. Always remember, the bigger the risk, the larger the reward or loss. Invest with caution.

For additional resources involving financial help, please view PNC Online Banking, SunTrust CD Rates, best bank savings rates, Westpac Online Banking and Online Banks at http://www.onlinebanksblog.com/union-online-banking

E-Banking Impact of Information Technology in India

E-Banking: Impact of Information Technology in India Mr. Vijay Kumbhar [Assit. Professor in Economics, Abasaheb Marathe College, Rajapur Dist- Ratnagiri (Maharashtra)]

Introduction With the advancement of information technology and to derive the inherent advantages of its implementation, there was a long felt need to give recognition to the electronic mean as an alternative to paper based banking practice in India. The evolution of banking technology has been mainly driven by changes in distribution channels as automated teller-machine (ATM), phone-banking, tele-banking, pc-banking and most recently internet banking etc. In the traditional banking system a person had to go to a bank branch to deposit or withdraw money and get a bank statement book manually updated by a teller over the counter. With the introduction of computer networks, a networked printing machine started replacing the manual update of statements. Then automated teller machines (ATMs) were introduced to facilitate withdrawals, deposits and even transfers accommodating mobility in much wider geographical areas. Phone banking was a revolutionary concept in banking since it made banking accessible from anywhere as long as phones were available. With the successful diffusion of mobile phones, phone banking is moving into a next phase of development. However, one of the most substantial changes in banking technology is the recent introduction of internet banking.

1.0 Definition of E-Banking E-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. E-banking includes the systems that enable financial institution customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet. Customers access e-banking services using an intelligent electronic device, such as a personal computer (PC), personal digital assistant (PDA), automated teller machine (ATM), kiosk, or Touch Tone telephone. While the risks and controls are similar for the various e-banking access channels, this booklet focuses specifically on Internet-based services due to the Internet’s widely accessible public network.

1.2 Origin of E-banking In India The Indian banking system has undergone significant technological transformation since the 1980s.The Rangarajan Committee report in 1980s was the first step towards computerization of banks. Banks started exploring the idea of ‘Total Bank Automation (TBA)’. Although titled ‘Total Bank Automation,’ TBA was in most cases confined to branch automation. It was only in the early 1990s that banks started thinking about tying-up disparate branches together to facilitate information sharing. At the same time, private banks entered the banking arena with radically different strategies. The private banks provided huge budgets to the adoption of technology to provide a whole new range of financial products and services at minimal costs.

1.3 E-Banking in India Most of Indian commercial banks are providing non-conventional and innovative banking services. Product innovation is tied to internet banking; increasing competition amongst the leading banks also promotes product and service differentiation. For example, despite the Internet Banking System developed in 1990 by the reserve bank of India with the help of department of telecommunication of India. Moreover, Indian banks offer innovative technology based banking products and service to their customers. Information technology revolution affect on traditional banking practice in following manner in India.

1.3.01Computerization of Banks in India Computerization is general trend in all sector, banks also trying to Computerization, as per recommendation of Rangarajan Committee (II), the progress in implementation of the directive of the Central Vigilance Commission (CVC) on the need to computerize 70 per cent of the banking business by public sector banks before January 1, 2006, 13 banks had achieved the desired level. Figures as at end of March 2008 indicated that 23 banks have achieved the target, while two banks have computerisations levels ranging between 70 per cent and 79 per cent and two others were at a level below 65per cent and 29 percent banks having a core banking solution. At present there are 67.7% of branches are under Core Banking Solutions, 94.6% are fully computerized and 6.4% are partially computerized branches of public sector banks in India. Other than public sector banks, all private and foreign banks are mostly computerized recently.

1.3.02Wireless Banking, Online Banking or Internet Banking Wireless banking/ online banking is a delivery channel that can extend the reach and enhance the convenience of Internet banking products and services. Wireless banking occurs when customers access a financial institution’s network using cellular phones, pagers, and personal digital assistants through telecommunication companies’ wireless networks. It uses the Internet as the delivery channel by which to conduct banking activity, e.g. transferring funds, paying bills, viewing checking and savings account balances, paying mortgages, and purchasing financial instruments and certificates of deposit. Online banking usually offers such features as: Bank statements, with the possibility to import data in a personal finance program such as Quicken or Microsoft Money Electronic bill payment Electronic funds transfer between a customer’s own checking and savings accounts, or to another customer’s account Electronically investment purchase or sale of securities by D-Mat Account Loan applications and transactions, such as repayments account aggregation to allow the customers to monitor all of their accounts in one place whether they are with their main bank or with other institutions.etc.

1.3.03Core Banking or Centralized Banking Core banking is a term used to describe a service provided by a group of networked bank branches. Bank customers may access their funds from any of the member branch offices. Core banking consists of a networking process by which the servers of different branches of a bank are joined to a common server and henceforth an account holder may access, deposit, and withdraw money from his/her account from any of the branches of the bank. In 21st United States, core banking has become common place. Today 67.7 % of public sector bank branches are all branches of private and foreign banks are under core banking solution in India.

1.3.04Electronic Authentication and Electronic Signature Banks are now using technology for the proper identification of customers’ identity. In the era of technology based banking operation verifying the identities of customers and authorizing e-banking activities are integral parts of e-banking services. Since traditional paper-based and in-person identity authentication methods reduce the speed and efficiency of electronic transactions, financial institutions have adopted alternative authentication methods. The latest option digital (electronic) signatures for generating and identification of customers signature is best option within the electronic banking platform.

1.3.05BANKNET BANKNET is a internet based communication network backbone. It provides speed of financial transaction. At present, seven centers viz. Mumbai, Delhi, Calcutta, Madras, Nagpur, Bangalore and Hyderabad. Set up in 1991 by the RBI, this backbone is meant to facilitate transfer of inter-bank (and inter-branch) messages within India by Public Sector banks who are members of this network. More centres (like Pune, Ahmedabad, Kanpur, Lucknow, Chandigarh, Kochi, Jaipur, Bhopal, Patna, Bhubaneshwar, Thiruvananthapuram, Guwahati, Panaji Jammu etc) are being brought on the network.

1.3.06INFINET-Indian Financial Network The ‘INFINET’ Indian Financial Network is a satellite based wide area network using VSAT (Very Small Aperture Terminal) technology set up by the RBI in June 1999. The hub and the Network Management System of the INFINET are located in the Institute for Development and Research in Banking Technology, (IDRBT) Hyderabad. Among the major applications identified for porting on the INFINET in the initial phase are e-mail, Electronic Clearing Service – Credit and Debit, Electronic Funds Transfer and transmission of Inter-city Cheque Realization advices. Later, other payment system related applications as well as Management Information System (MIS) applications are proposed to be operationalized.

1.3.07Indian Banks and S.W.I.F.T All Indian public sector banks are part of the international financial messages communication network, namely, Society for Worldwide Inter-bank Financial Telecommunication (S.W.I.F.T). The S.W.I.F.T provides reliable and expeditious telecommunication facilities for exchange of financial message all over the world. The gateway is in Mumbai and efforts are on to other cities through leased lines/public data network.

1.3.08Electronic Data Interchange (EDI) EDI is a computer-to-computer transfer of details of commercial or administrative transactions using an agreed protocol and standard data structure. EDI standards have been developed in respect of specific messages for transmission of business transactions which are electronic equivalents of commercial invoices, purchase orders, transport bookings and payment instructions etc.

1.3.09Telephone banking, Mobile Banking and SMS Banking Telephone banking is specific provision of banking services over the telephone. It allows customers to perform transactions over the telephone. Most telephone banking use an interactive voice response (IVR). Mobile Banking is the hottest area of development in the banking sector and is expected to replace the credit/debit card system in future. Most of banks are providing SMS alert facility to their customers. Facility of SMS services SMS banking is becomes very much safe and useful in recent days.

1.3.10MICR Clearing MICR (Magnetic Ink Character Recognition) is a character recognition technology adopted mainly by the banking industry to facilitate the processing of cheque. The process was demonstrated to the American Bankers Association in July 1956, and it was almost universally employed by 1963. MICR characters are printed with a magnetic ink or toner. Magnetic printing is used so that the characters can be reliably read into a system, In India MICAR Introduced in 1987 in the four Metros, the MICR Clearing is now in operation in 14 centers (HYDERABAD, BANGLORE, AHMEDABAD, KANPUR, JAIPUR, NAGPUR, BARODA, PUNE, GAUHATI, TRIVANDRUM) and is proposed to be extended to a total of 22 centers where volume of clearing transactions is large. 1.3.11Automated Clearing House The Automated Clearing House (ACH) is an electronic banking network operating system. ACH processes large volumes of both credit and debit transactions which are originated in batches. Within the Rules and regulations governing the ACH network are established by the Reserve Bank of India by the help of the State Bank of India. 1.3.12Credit card and Debit Cards A credit card system is a type of retail transaction settlement and credit system, named after the small plastic card issued to users of the system. In the case of credit cards, the issuer lends money to the consumer. Credit cards are become very popular in India with the introduction of foreign banks in the country. A debit card is a plastic card which provides an alternative payment method to cash when making purchases. Debit cards are accepted at many locations, including grocery stores, retail stores, gasoline stations, and restaurants. It’s an alternative to carrying a checkbook or cash. There are currently two ways that debit card transactions are processed: online debit cards and offline debit cards. Online debit cards require electronic authorization of every transaction and the debits are reflected in the user’s account immediately. Offline debit cards have the logos of major credit cards (e.g. Visa or MasterCard) or major debit cards (e.g. Maestro) and are used at point of sale like a credit card. This type of debit card may be subject to a daily limit, as well as a maximum limit equal to the amount currently deposited in the current/checking account from which it draws funds.

1.3.13RTGS (Real Time Gross Settlement System) Real Time Gross Settlement (RTGS) is a comprehensive secured on line settlement solution, set up, operated and maintained by Reserve Bank of India to enable funds settlement across banks in the country on real time basis to minimize costs and maximize benefits, increase velocity of funds-flow both inter- city and interbank, reduce credit risk, increase transparency of payments and better liquidity management. RTGS is managed by RBI. In India RTGS System has been implemented since March 26, 2004. 1.3.14Electronic Clearing Services (ECS) ECS Scheme operated by the RBI since 1996-97, it helps to make payment from a single account at a bank branch to any number of accounts maintained with the branches of the same or other banks. This is the most useful mode of payment of dividend / interest/ pension/refund etc. The clearing and settlement activities are dispersed through 1,047 clearing houses managed by RBI, the State Bank of India and its associates, public sector banks and other institutions. 1.3.15Electronic Funds Transfer (EFT) & Special Electronic Funds Transfer EFT System hosted and operated by the RBI, permits transfer of funds, unto Rs. 5 lacs from any account at any branch of any member bank in any city to any other account at any branch of any member bank in any other city. This system utilizes the Service Branches of the member banks and the nodal offices of RBI. RBINET is the conduit for the flow of funds. The Reserve Bank of India acts as the service provider as well as regulator. A special EFT (SEFT) was introduced in April 2003 covering about 3000 branches in 500 cities. This has facilitated same day transfer of funds across accounts of constituents at all these branches. 1.3.16Automated Teller Machine (ATM) The first bank to introduce the ATM concept in India was the Hong Kong and Shanghai Banking Corporation (HSBC) in the year 1987. Now, almost every commercial bank gives ATM facilities to its customers. SBI is following the concept of ‘ATMs in Quantity’. The Corporation Bank has the second largest network of ATMs amongst the Public Sector Banks in India. Today’s all Public Sector Banks are taking the installation of ATMs seriously for Indian market. They are either setting up their own ATM centers or entering into tie-ups with other banks. Since April 2009 access in any ATM machine is free of charge it is the great opportunity to any ware banking in India. 1.3.17Electronic Bill Payment EBP can attract customers due to the faster and efficient bill payment mechanism of the banking in India. Customers can access their financial information more easily and create a more intimate relationship with the customer and promote and deliver other online products and services. Most of Indian banks are trying setups an EBP portal. ICICI has already started a portal called BillJunction.com. Banks are planning to use the Net for payment of utility bills. They are entering into tie-ups with utilities like MTNL, AirTel, Orange, and BPL Mobile etc. Right now, a customer who’s received a bill in the physical form logs into the network in order to make an online payment. In the future, these bills will be sent to customers through the Net.

Conclusion All these developments in Indian banking are shows that, the Indian banks are marching towards modern banking and changing their traditional look. It is grate change of banking industry because of information technology development. They are trying to installation of information technology for banking business and they trying to provide technology based banking products and services to their customers. Indian banks also trying to Univerlisation of banking products and services to one stop banking shop for customer delight, but comparatively private and foreign banks existing in Indian economy are having a higher level of modernization and those providing numbers of modern services to their customers. References:- 1)Davis whitely (2000) : Strategy Technologies, and Applications MCGRAW- Hill company. 2)Dr. M.Mahmaoudi Maymand (2005) E-commerce Deep & Deep publications pvt.Ltd. 3)Gordon, Natarasan (2006) Financial Markets & services Himalaya publication House Delhi. 4)P.R.Shukla, S.K.Rovchoudhary, (1992), Banking System, credit and Developments, Akashdeep publishing House, New Delhi. 5)N.Vinaykam (1993); A peep In To The Private sector Banks, kanishka publishers Delhi. 6)Khan Masood Ahamad (1992) Banking In India, Anmol Publications, New Delhi. 7)S.S.Hugar (1993), Trends And challeges To Indian Banking, Deep & Deep publications, New Delhi. 8)Vasant C.Joshi, Vinay V.Joshi (1998) Managing Indian Banks : The Challenges Ahead, Sage publications, New Delhi. 9)Frederic S. Mishkin (1998), The Economics of Money Banking and Financial Markets 5th edition an important of addition wesly Longman. 10)Report on Trends and progress of Banking in India – 2005-06 11)R.B.I. Annual Report 2004-05 and 2005-06. 12)Banking Industry – Vision 2010 13)Professional BANKER – July 2007.