Banking Terms for Bank Exams


1. Depositioning: In the context of marketing an attempt to change the identity of competitors, products, relative to the identity of your own product, in the collective minds of the target market is called depositioning.

2. Digital Banking: Digital Banking means a technology which a bank uses to send account statements of savings/current accounts & credit card accounts, electronic contract equity transactions etc. using digital signatures. Banks save the cost of paper & time of their personnel. Such documents carry a thumb impression at the end of the document which represents a digital signature, thereby adding to its authenticity / legitimacy in the eyes of the customer.

3. Direct & Indirect Marking: In direct marketing the bank will approach the prospective customer directly while in indirect marketing the bank will approach the customer through third party agencies like Direct Selling Agents, Brokers etc. who will be given a commission by the bank for a successful sale. Examples of direct marketing are distribution of pamphlets, leaflets, brochures, mailing lists, telephone calls directly to customers. Due to the disturbance it causes to the recipient, telephone calls to a prospective customer without his concurrence can be objected to by him and the defaulting bank can be asked to stop doing it.

4. Diversification: Diversification means getting into new areas of business. If a retail bank gets into the Insurance business, it is an example of diversification.

5. Drip Marketing: The method of sending promotional items to clients is called Drip marketing.

6. DSA: DSA stands for Direct Selling Agent. A DSA helps in selling a bank’s products to existing/prospective customers of a Bank.