Feature Post

NEO Banking - A Future Digital Banking, Development Scope, Threat and Challenges

What is Neo Banking? NEO banks are the banks which has no physical branches. NEO Banks are digital only financial institutions that operate exclusively online through websites and mobile apps.  The financial services industry has undergone massive transformations from manual to Core Banking and now digital without any physical branch. the evolution of banking has been marked by innovations aimed at making financial services more accessible, convenient, and efficient.   NEO Banks offers services like below: Account Management: Account Opening, Checking, Savings, and Money Transfers Loan Services: Quick and seamless loan approvals Low Fees: Minimal or no fees due to lower operational costs Tech Features: Budget tools, instant payments, and real-time alerts Why Are Neo Banks becoming popular now? Convenience : 24/7 mobile banking—no waiting in lines. Lower Fees : No hidden charges, free international transfers, and zero maintenance fees. User-Friendly Apps : Seamless, f...
0

Quick Refernce Guide for CAIIB-Retail Banking Part 4 of 5

    10.   Future Value of Money

FV = PV (1+r)n

FV = Future Value, PV = Present Value
n – Period,     r – Rate of Interest

ex. If Rs 10000 will be invested for 5 years at interest rate 8% p.a find the future value.

FV = PV (1+r)n
     = 10000(1+8/100)5
= 10000(1+0.08)5
=14693

·         Same value can be calculated using Future Value Table.
FV = PV * Future Value Factor

11.   Future Value of Ordinary Annuity – When payments are made/ received at the end of each period.
                F = A [(1+i)n -1/ i]
      Where F = Future Value
                A = Annuity
                i – Interest rate
                n - Term


12.   Future Value of Annuity Due – Payment are made/ received at the beginning of each period.
                F = A[(1+i)n – 1/ i](1+r)
       Where F = Future Value
                A = Annuity
                i – Interest rate
                n – Term
·         Same value can be calculated using annuity table
  Future Value of Annuity = Annuity * CV Factor

     13.   Present Value

PV = FV / (1+r)n

Using Present Value Factor PV = FV * Present Value Factor



 Part 1         Part 2       Part 3       Part 5

Comments

Post a Comment