An Analysis of Bankers' Responsibilities Towards Their Clients

This essay delves into the multifaceted responsibilities of bankers towards their clients, examining the core duties, ethical considerations, and the impact of these responsibilities on the banking sector. The essay begins by introducing the fundamental role of bankers in providing financial services, including managing accounts, offering loans, and providing investment advice. It explores the importance of relationship managers in fostering client relationships, especially in retail and wholesale banking. The essay further examines the skills required of bankers, such as communication, analytical abilities, and salesmanship, to effectively serve their clients. It discusses various responsibilities, including assessing financial positions, resolving customer queries, and adhering to banking regulations. Furthermore, the essay highlights different relationships between bankers and clients, such as debtor-creditor and agent-principal relationships, illustrating the complexities of the banking business. The essay concludes by emphasizing the significance of bankers' responsibilities in ensuring customer satisfaction and maintaining the integrity of the financial system. The essay is supported by references to various authors and articles to provide a comprehensive overview of the topic.

Bankers Have
Responsibilities to their
Clients

Table of Contents
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW .........................................................................................................1
TOPIC: “Bankers have responsibility to their clients” .................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Bankers have responsibility regarding their client which they have to fulfil and every
bankers have different quality which make them unique in their own way. Firstly they have to
fulfil their daily job duties and they are responsibility for customer financial position (Bonin,
Hasan and Wachtel, 2014). Basically bankers have to help each customer of bank along with all
financial questions & need to know about anything related to bank activities or programs. This
project report cover the topic of bankers responsibility in context of their clients. With the help
of various authors viewpoint readers able to understand bankers responsibility.
LITERATURE REVIEW
TOPIC: “Bankers have responsibility to their clients”
According to Exforsys 2006, bankers have multiple responsibility which they have to
perform in order to satisfy their customers or clients. Role and duties are different of every
bankers because it is depend upon the organization because of small or large corporation.
According to authors it is very important to know their general duties which helps in knowing
their profession and further helps in pursuing it. Before explaining banker's responsibility it is
important to know what is banker mean (Duties of Bankers, 2006). Banker is the person who
make aware their clients regarding bank policies and financial matters. Bank provide information
regarding financial instrument such as saving, current accounting, loans, investments, taxes,
securities etc.
Some of the general responsibilities are complete their daily job, make people aware
about their financial program and convince them to invest on those securities or contribute it.
Bank provide various facilities such as loan, investment in various securities, open bank account
and other policies for their beneficial (Burianová and Paulík, 2014). For that, banker have to
check client's financial position before provide them loan. Along with this, it is very important to
resolve customer's query regarding their finances and bankers also have to ensure that they
comply all the institutional rules & regulations and state law.
There are some specific duties or responsibilities which banker have to perform in order
to satisfy their customers and make their experience good with the organization. Banker have to
provide those solutions which client looking for their finances (Tuch, 2015)(. For example:
customer looking for huge amount of loan so it is banker's responsibility to check their current as
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well as previous financial condition. Also make sure that, customers does not have previous
loans or obligations to pay someone (Paulet, Parnaudeau and Relano, 2015). These factors is
very important to analyse before providing loan to someone. Bankers provide best way to meet
their financial requirement and achieve desired goals.
As per the Aspiring Minds article 2019, in the current banking sector in order to improve
bankers or customers relation. Banking service found new term “relationship managers” these
people directly connected with the clients and provide retail or whole sale banking services
(Banker's responsibility to their clients, 2019). Main purpose of relationship managers is to help
clients along with their account details and provide effective or valuable advice regarding their
financial investments. Retail relationship manager have responsibility to handle each customer
along with generate more business for bank through cross selling of bank products & services
Williams and Conley, 2015). On the other hand, wholesale relationship manager deals with
corporate clients such as small medium business or large corporations.
It is also happen that, bankers have to communicate with other bank's employees
regarding their clients previous history of finances. For example: if client come to take loan and
they already taken loan from another bank (Fatma and Rahman, 2016). So banker will contact
loan officer and collect all the required information or if they found something wrong then
banker will deny to pass their loan application.
According to author, if bankers wanted to fulfil their roles & responsibilities then they
required some specific skills because they have to interact with variety of people. So they need
specific skills such as excellence communication or listening skills, presentation skills, banker
need to be confidant, have understaffing regarding finances or banking products & services. In
addition they required, analytical skills, ability to understand complex information and try to
make it simple. Banker required to have sales ability with negotiable skill which is required to
attract or convince more people to invent in their bank's products.
It has been critically evaluated that every banker perform their duties or responsibilities
accordingly. But every organization have different demand and different responsibility according
to the business functions. As per Exforsys, banker have some general or special duties which
they have to fulfil in context of their clients and make sure to satisfy them with the help of
effective customer service. On the other hand, team of Aspiring Minds evaluated that
relationship managers have to focus on customer needs and they are able to satisfy them when
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they have all the necessary skills which required a banker to complete their task through satisfy
their client's needs.
In order to complete banker's responsibility they have to make sure that bankers or
customers have good relation and it possible when they communicate regarding financial issues.
This relationship also based on the type of transaction done by customers, in this case both party
have rights & obligations top perform their task in order to achieve their goals & objectives.
Customer have goal to maximise their returns from saving and investments. Similarly bankers
wanted to increase number of customers who consume their services. Banking sector perform
various functions rather than just accepting deposits (Lim and et.al., 2017). Back provide the
various facility where individual can increase their income through inventing in securities. Along
with this, bank provide loans for various reasons which help the clients to meet their personal or
professional goals. In addition, bank provide the insurance coverage to the individual as well as
for vehicles (Oyegunle and Weber, 2015). Basically bank provide variety of facilities and further
its banker's responsibility to match these products & services with the customer requirement.
Make sure that, they have to provide clear information regarding every aspect and ensure to done
documentation for further process.
Zain, Khazzan and Yasin stated that, bankers required some common characteristics as
per baking business which they have to carry out. Major two characteristics found in the bankers
firstly they accept money or cheque and place them to their creditors and second is honour
cheque drawn by the customers and debit to their customer account accordingly (Mansour, Ben
Jedidia and Majdoub, 2015). Accounting to Lord Diplock, there are third characteristics also
found that is collection of cheque. Generally, bank involve with activities through opening
current account, withdraw cheque, provide loans, about portfolio investments etc.
As per the author, reputation may exclude from a person being a banker so they able to
understand the roles & responsibility of that position and perform accordingly. Relationship
between banker or bank through engaging individual in banking business. As per this study
variety of relationship found between the banker of customers (Parameswar, Dhir and Dhir,
2017). It started with the debtor – creditor relationship where customer deposit the amount in the
bank accounts, so in case of bank they are creditors or bank is debtor for clients. Another
relationship is agent- principle, where customer provide authority to their bank to take some
actions or transaction on behalf of them (Naheem, 2015). For example: in the life of
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digitalization, customer prefer to pay their bills or other payments online. So they link all the
transactions with bank account and further bank will proceed the payment such as monthly
payment of EMI or insurance and other payments as well (Orbell, 2017). It has been critically
evaluated that bankers have many responsibility so they have to perform accordingly and make
sure to satisfy their each customers through providing effective services.
CONCLUSION
From the above discussion, it has been concluded that bankers have many responsibility
towards their organization, community, clients etc. Because of this, they have to manage in
effective way through formulating strategies and decisions which is beneficial for organization
but also satisfy customers needs & expectation. According to various authors, it has been
concluded that bankers required some specific skills which helps them to deal with customers or
clients and resolve their issues regarding finances.
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REFERENCES
Books & Journals
Bonin, J., Hasan, I. and Wachtel, P., 2014. Banking in transition countries.
Burianová, L. and Paulík, J., 2014. Corporate Social Responsibility in Commercial Banking-A
Case Study from the Czech Republic. Journal of competitiveness.
Fatma, M. and Rahman, Z., 2016. The CSR's influence on customer responses in Indian banking
sector. Journal of Retailing and Consumer Services. 29. pp.49-57.
Lim, C. Y. and et.al., 2017. The paradoxes of risk management in the banking sector. The British
Accounting Review. 49(1). pp.75-90.
Mansour, W., Ben Jedidia, K. and Majdoub, J., 2015. How Ethical is I slamic Banking in the
Light of the Objectives of I slamic Law?. Journal of Religious Ethics. 43(1). pp.51-77.
Naheem, M. A., 2015. AML compliance–a banking nightmare? The HSBC case
study. International Journal of Disclosure and Governance. 12(4). pp.300-310.
Orbell, J., 2017. British Banking: A Guide to Historical Records. Routledge.
Oyegunle, A. and Weber, O., 2015. Development of sustainability and green banking
regulations: existing codes and practices.
Parameswar, N., Dhir, S. and Dhir, S., 2017. Banking on innovation, innovation in banking at
ICICI bank. Global Business and Organizational Excellence. 36(2). pp.6-16.
Paulet, E., Parnaudeau, M. and Relano, F., 2015. Banking with ethics: Strategic moves and
structural changes of the banking industry in the aftermath of the subprime mortgage
crisis. Journal of Business Ethics. 131(1). pp.199-207.
Tuch, A. F., 2015. Banker loyalty in Mergers and Acquisitions. Tex. L. Rev.. 94. p.1080.
Williams, C. A. and Conley, J. M., 2015. The social reform of banking. In Responsible
Investment Banking (pp. 235-250). Springer, Cham.
Zain, N.R.B.M., Khazzan, N. and Yasin, N.M., RIGHTS AND DUTIES OF BANKERS:
CONVENTIONAL AND ISLAMIC BANKS.
Online
Banker's responsibility to their clients. 2019. [Online]. Available Through:
<https://www.aspiringminds.com/hr-insights/featured-profiles/relationship-manager-in-
banking-service/>
Duties of Bankers. 2006. [Online]. Available Through:
<http://www.exforsys.com/career-center/career-tracks/duties-of-a-banker.html>
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