Assignment Consumer Banking
7 Pages1516 Words179 Views
Added on 2019-11-12
Assignment Consumer Banking
Added on 2019-11-12
ShareRelated Documents
Running head: CONSUMER BANKING Table of ContentsIntroduction...........................................................................................................................................21.Product Offering........................................................................................................................22.Consumer offering.....................................................................................................................23.Development of New product....................................................................................................34.Lifecycle of the product.....................................................................................................................3Part 2.....................................................................................................................................................41.Channels of Marketing..............................................................................................................42.Marketing Strategy....................................................................................................................43.Value chain................................................................................................................................54.Strategy to price.........................................................................................................................5Conclusion.............................................................................................................................................6Bibliography..........................................................................................................................................7Lending and credit offerings by Wells Fargo
CONSUMER BANKING1IntroductionFinancial aspect is the most essential aspect of any individual’s life. For managing the needswhich provide a convenience to lifestyle aspects, light has been shed upon the lending andcredit offerings by wells Fargo consumer banking service. This offering is categorised invarious forms of credit and loan requirements for e.g. Credit against mortgage, home loans,providing credit limit through credit cards and loan against education etc. This bank helps inmanaging the borrowing needs of various customers according to their capacity to repay.Since it is a risk taking activity to provide a loan, it is a prime responsibility for any bankingindustry to take care of the repaying capacity of the borrower which is judged by the creditscore an individual has.1.Product OfferingThe offering to meet the borrowing needs of the customer focused is loans and credit product.This product deals with funding the requirement of the customer according to the nature ofthe need. These financial needs are in the form of home loans, Personal loan etc. For e.g. thecustomer for the personal needs, require to qualify the credit verification which is done on thebasis of repaying any current debts and verifying the income of the customer. On the basis ofonline funding and application process, the loan is approved (Wells Fargo Works, 2016). Therate of the interest may vary with the term of the loan which may be in between the range of12-60 months. For e.g. the personal loans may charge an interest rate of 12.99% if the term isfor 5 years. The interest rate is lower if the life of the loan is short. The loans approved maybe in between the range of $3000- $100000 depending upon the requirement and credibilityof the customer.
CONSUMER BANKING22.Consumer offeringThe product offering is under the category of Non store consumer lending which has seen adecrease recently. This is due to reason of offering risky loans to compete with the otherbanks which has led to losing money. The customer base for lending is entirely dependentupon the identifying how to treat the customers basis their age and income. A young agegroup belonging to middle class group would finance their needs through a short term loanwhile an old age group belonging to business class group would satisfy the need through along and a large amount of loan. The marketing of lending loan services would be moreaccessible if the bank helps the customers to save tax. This is a way of relieving thecustomers from taxes up to an extent by bundling it with various loans approved.3.Development of New productDue to the decrease in the lending of loans experienced in the market, which is because ofoffering risky loans earlier to compete with other banks there is a need to re develop andsimplify the process. The low and middle income group of people feel that the credit policyof the bank to be too tight. If the lending process includes the down payment to be low withintroducing programs for assisting consumers with counselling their needs, then the inabilityto become eligible for loan amongst borrowers will become simple and convenient.4.Lifecycle of the productThe offering which is proposed with a modification is in the stage of Introduction andrelease. This stage requires analysing the willingness of the customer to pay for the offering.An extensive research before testing it in the market before releasing it for distribution isimportant in this stage. The bank must ensure no loss to the credit and financial division ifthere is any disconnect with regards to the facts and figures regarding the hidden cost. The
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Corporate and Retail Banking Assignmentlg...
|16
|4605
|44
High handling cost in SME lendinglg...
|14
|3319
|439
Bank Financial Risk Managementlg...
|6
|1312
|91
Mortgage Broking Rate Reportlg...
|5
|1766
|151
External Sources of Long Term Finance for Sole Traders, Partnership Firms and Companieslg...
|7
|1311
|240
FNSCRD301 Process Applications for Credit, Assessment 2 - Performancelg...
|6
|2125
|345