Banking Terms for Bank Exams


1. Innovation: Innovation helps in visualizing, developing new products and services or modifying existing products /service to better service customer requirements. OECD defines product innovation as “the introduction of a good or service that is new and has significantly improved with its characteristics or intended use. This includes significant improvements in technical specifications, components and materials, incorporated software, user friendliness or other functional characteristics.

2. Internet Banking: Internet Banking means completing banking transactions through the internet. This is provided on request to customers. With advances in technology such transactions are safe. With internet banking gaining popularity, customer need not physically visit the bank to complete his banking tasks. In fact, in some countries, a customer is charged for making personal visits to the bank for availing its services.

3. ISP: ISP stands for Internet Service Provider


1. La carte: Availing marketing services from ad hoc suppliers, rather than a centralised source is called a la carte. An example of this practice in a bank is if they recruit direct sales agents in an adhoc manner.

2. Lead: A lead means a target / prospective customer

3. LOC: LOC stands for Letter of Credit