Transaction Banking

Transaction banking is a part of Corporate banking. One needs to be well-versed with the actual flow of money to be a successful transaction banker. In some banks transaction banking is specialized and separated from Corporate banking while in some it is part of the same team.

Examples of scope of a Transaction Banker's profile

1. How is money transferred across countries? For e.g. Learn about SWIFT

2. How is money transferred within the country? For e.g. Know the difference between NEFT, RTGS, IMPS, Cheque payments, UPI, Wallet Payments etc.

3. Designing innovative payment collection solutions at POS

4. Designing Supplier-Wholesaler- Retailer money transfer solutions for a leading FMCG player

5. Helping large insurance companies collect premiums from thousands of outlets and variety of modes across the country

6. Helping E-Commerce companies optimize their finances and relationships with vendors

7. Trade Finance

8. Supplier's Credit

9. Bank Overdraft or Cash Credit

A transaction banking relationship manager helps the Bank's treasury by ensuring that high current account balances are maintained by its clients by banking with them. In a country like India with relatively high interest rates, high current account balances alone help banks make a lot of money.

In a globalised world, a transaction banker in a MNC bank works on complex solutions for its clients that operate out of variety of countries. For e.g. the Australian subsidiary of an Indian company is likely to have the same bank that works with the parent in India. This helps to manage finances better across countries and continents.

Up Next

In the next chapter, find out how Kodak bounced back from bankruptcy. Learn about restructuring, and why it is are essential to the financial management of organisations.