First of all, Bank is a financial intermediary to protect, transfer, exchange and lending money. At the same time, it is also a service industry. A lot of institutions and banks have significant status in the economic by providing some essential services of economic movements. Using various kinds of ways to protect, transfer, loan and exchange currency and evaluate its customer's credit is the main business; each of these activities has a certain impact on the economy.
Protect people's properties perhaps is the most original function of banks. When people refer to save money, they may think of bank vault or some places where can keep valuables. Banks put a lot of time and effort on the safeguard and technology to maintain and keep the accurate records. This stability is very important for the economy and the whole society.
Next, banks make the currency in circulation. "We have seen that the main function of bank is to collect funds from units in surplus and lend funds to units in deficit." (Casu, 2006). Although there are many ways for currency to circulate in economy, banks still play the central role for establishing the financial environment. In economic, to achieve the growth and make the stable of currency supply these two significant functions by the circulation of currency. Customers and business enterprises can get the money they need from banks' lending. With investment funds, people can expand the business scales, create some employment opportunities, and thereby promote the growth of economic. Large-scale capital flows is a characteristic of modern economic society. Suppose, if there were no banks, that would be convenient for you? Without banks in our lives, it is hard to reach the present level of economic growth, and the accumulation wealth of our society. (Econ, 2001). Because of the banks, the expansion of production, new products research and business expanding could be provided financial support. It can be said that the banks credit intermediary function accomplish social economics booming and development.
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Certainly, banks are also a high risk industry. Once the credit excessive inflates, it will lead to financial crisis, economic depression, unemployment, currency devaluation and so on. In today's global economy, the financial crisis will spread rapidly around the world. The U.S. financial crisis in 2007 led to worldwide economic recession, the world economy is still not out of the valley yet. (Gennotte,2002)
Nowadays banks offer a wide range of additional services, such as payment services; deposit and lending services; investment and insurance services; e-banking.(Casu,2006). As a service industry, if they want to make some positive effects on the community, and in order to meet the demand of the community, they must improve their services to enhance their capabilities continuously. Banks can not lead the devaluation itself, but its credit intermediary function can make the social capital flow to where it is needed to create more wealth, and this is function that the banks contribute to the society. In fact, the credit intermediary is a service, its service quality and efficiency can show the level that how banks make function and contribution to the society.
Meanwhile, the competition between the banks is a kind of reputation, service and products competition. Like any other enterprises, banks must attract customers to obtain benefits. No matter individual or companies, when they choose a bank, the first consideration is the safety of the bank, whether they could provide a good service and products to meet consumers' need. In the past 20 yearsï¼ŒBanking industry has an enormous change; it has become the world most competitive industries. But the service enhancement and efficiency improvement should be continuous. Commercial banks should accord to the following aspects to improve the quality of services for the benefits of the consumers.
First of all, understand and awareness the contents of the bank services. The nucleus of bank service is to maintain and strengthen the links with customers. How to win the market permanently is a problem which every enterprise always needs to face. Banks should take the customers as their core, and adjust themselves; services should transfer from the simple operate financial products to maintain and make connections deeply with customers. Only pay attention on meeting customer needs is not enough, banks should also research the complex factors behind the demand of customers. Only to grasp the main core of the relationship between the customers, satisfy customer's needs at multiple levels can obtain the continued motion of its own development. To take customer as the center should be a commercial bank's business policy, and use it to improve services. Under the financial supervision's requirements and the premise of risk control, bank's various products, work processes should take the "to meet customer needs" as the principle, to let the customers enjoy the satisfied service.
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Secondly, strengthen and enhance the sense of service. High-quality services related to the image of enterprise. Banking is a service industry, it can not only have great products and work processes, but also should have a work team with the service sense. Banks should convey the concept of consumer services to all employees. When strengthen the employees' inner quality, the service concept, service awareness is also a long-term training they need to strengthen at any time.
Thirdly, strengthen training, increase business skills. Service quality and efficiency also depend on the business skills of bank employees. Despite the good products and work processes, the employees' business skills good or bad will also affect the service quality and efficiency, especially in introducing new products or hiring new employees. Business training seems a very important process, so banks should pay attention on training employees. Through training and strengthening management, promote the competence of staff services and enhance business skills to improve service efficiency. Use high-quality staff to create a high level quality service.
Fourthlyï¼Œimprove the electronic financial system, and innovate the means of services. Here, I would like to stress the main status of computer and network technology on improving the banking services. As we can see that in the past few decades, computer and network technology have been widely used in banking system, and bring a remarkable change in banking service. Nowadays, we use a lot of convenience and safety new productsï¼Œsuch as Internet banking, electronic currency and mobile banking. Their appearance even changed the way how people use money. At the same time, banks working process also had a huge change. Self-service technology, enabling consumers to use service independent, time savings and convenience make people prefer self-service technology than traditional person to person service.(Berger,2009). We have reasons to believe that with the technology development of computer and network, the banks' services will have a great space to enhance themselves in the future. People hope banks to create more convenient, safer, efficient and more economical services constantly. Therefore, banks would focus on new business exploitation to enhance aftereffect and competitiveness in the entire economic and financial environment. Commercial banks should set up special department for exploiting new business, strengthening the market surveys, innovating financial products, improving the service functions and levels. Plentiful variety of banking services is an essential factor for customers to choose the banks.
Finally, in order to improve the overall level of banking services, regulation needs to increase the financial supervision on banks. As we confirm banks positive effects on society, we also have to prevent it from harm. We should realize that credit intermediary is a high risk activity and learned a lesson from the U.S. financial crisis in 2007. Therefore, financial supervision should have an essential management on banks operating; make it in the effective control scope to play a positive role. Furthermore, banks also have to do their own risk control to ensure the safety of customers' funds.
Banks play an increasingly significant role in our social and economic development. The well operating banks should improve its service efficiency constantly, because they have the responsibility to function well on social and economic.