Paper Example on National Bank of Al-Khaimah

Published: 2021-08-11
1970 words
8 pages
17 min to read
University of California, Santa Barbara
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RAKBANK is also referred to as the National Bank of Al-Khaimah, it is said to be the leading bank in the UAE in the retail sector. It was founded in the year 1976, for the past years after establishment RAKBANK has been capable of opening its branches in the Middle East (El Mallakh, 2014). RAK bank was the first country in the Middle East to provide mortgage finance for the private properties. RAK Bank was majorly established to assist the private banking sector in the UAE.

RAKBANK is ranked as one the best banks in providing credit cards in UAE; it also introduced new banking products such as Cashback and Free for Life which nowadays is also used by many banks in the world (El Mallakh, 2014). In the Middle, East RAKBANK was the first bank to introduce Samsung Pay solutions by use of ATMs in the Middle East. This service helps the customers to come up with cash withdrawals without using any card in any transaction. It is said to be one of the most innovate banks in UAE, and it has won many host awards because of winning the digital solutions. It also extended the Samsung Pay solution services to the ATMs when no contacts are made for any customer (El Mallakh, 2014).

The finance departments of the RAK Bank structure.

The founders and shareholders of RAKBANK act as an encouragement and help the workers to understand the Arabic religion and the connection it has to the world's market and hence ranking them as the number one bank in the Middle East (El Mallakh, 2014). The various established branches in the world have become the primary hub of RAKBANK whenever there is an event in the involved country and thus acting as a central element of the Bank International Division (Hammoudeh and Choi, 2006). RAKBANK is categorized into different departments which include: the private banking department, trade finance department, corporate banking department and the treasury department.

The Private Banking Department is usually used in the provision personal banking services hence a high net of clients from the UAE region will be experienced.

The individual department offers a wide-ranging finance service that covers inhabited and commercial properties for the owners to occupy or investment on the wealth. For the Trade Finance Department, it is involved in the provision traditional and bespoke financial products for the clients to import in both the United Kingdom and Europe (Hammoudeh and Choi, 2006). The products offered include the offering of discounts on trade instruments such as bills of exchange and also the confirmation of goods. Corporate Banking Department covers a diverse and developing portfolio of the United Kingdom and those in the Northern Europe for all the multi-national corporate customers (Hammoudeh and Choi, 2006). Furthermore, it provides financial solutions like payment of loans in advance and also helps in revolving credit and long-term loans. Lastly, there is the treasury department which offers a variety of products and services for their products, Non-Bank Financial Institutions and also for personal customers.

The primary function of the financial department.

The financial department is responsible for bookkeeping which is the primary commercial function in every company. Before the shareholders of RAKBANK employed other workers they at first considered having a bookkeeper whose work was to track the company's transactions which were covering every operation taking place in the bank (Peppard and Ward, 2016). Later on, as the bank grew and some branches were established payable, and receivable clerks were employed to record the bank's transaction and also corresponded with vendors and suppliers if they were available. Reporting and controlling of financial records is the duty that takes raw accounting entries which are later on transformed into beneficial and are used in comparing the company's financial statements (Peppard and Ward, 2016). For the RAKBANK this function of financial reporting and control involved everything that the shareholders needed from ruling on how the principles of accounting are implemented to designing the bank's processes.

For one run a business paying taxes must be involved which involves filling of many documents, and a lot of money calculation is required. Using all the forms that were used when starting the business, the entrepreneur can present them to the taxman on time together with the government (Peppard and Ward, 2016). For RAKBANK to be established shareholders had to compile all these documents and do all the calculations needed and present them to the involved taxman. For the RAKBANK to prosper and develop branches in different parts of the world, it was capable of minimizing its tax and hence maximize its net income.

At this point now, the manager is needed in making strategic plans and also commercial projects required by the bank when carrying out the analysis. Future planning helps in having a strategic and financial plan which mostly focuses on the sales and expenses made by the bank or organization (Peppard and Ward, 2016). The other function is managing the company's treasury and its working capital when the firm is well maintained and cannot run out of money at any point. This helps in controlling the receivable and payable cash in the bank where a lot of money is invested within a short period hence more interest on income will be maintained, and the currency risk will be managed (Peppard and Ward, 2016).

Also, when starting a business, the entrepreneur is supposed to take some risks whenever a financial scandal is experienced either by the bank or any company (Peppard and Ward, 2016). Some of the other dangers that need to be looked into include the kind of interest rate being offered by the bank, the currency exchange rates in the bank and the type of market being invested in by the company.

The main products and services used by organizations from banks and other non-banks.

Banks in the world usually offers a variety of services that are used to entice their customers to some extent. These services include the advancement of loans where the bank is typically a profit gaining institution hence they offer loans to the public where they generate interest from them thus benefit is achieved (Peppard and Ward, 2016). The loans offered might be either short term, medium term or long terms, this is usually determined by the needs of the borrowers. Banks also provide overdraft facilities to their clients where they allow them to withdraw the cash more than what they have deposited. The customers are usually charged some interest on the overdrawn amount of money that they have taken.

The banks also offer discounts on the bills of exchange, this kind of lending is usually carried out by the new banks in the world. In this type of situation, the debtor who is the client gets the bill discounted by the bank and adheres to the agreement that the maturity amount has to be paid. The bank is responsible for the payment of the value of bill to the customer; this is after marginal deductions are made (Peppard and Ward, 2016). If one is an account holder in a certain bank one is usually given cheque pads which are used to draw a cheque for the payment of money by the bank. Banks also offer ATM services which are used for depositing and withdrawal of cash and the inquiries of the owner's account. This has reduced congestions in the bank, labor costs have been eliminated and are available for 24- hours.

The bank has also offered services such as online banking an account holder is capable of visiting his or her account through the internet. The account holder is also capable of carrying out any transaction like transfer of accounts, balancing of inquiries and payment of bills or even stopping any payments from taking place. This can be done at any time whether in the day or during the night and from anywhere (Peppard and Ward, 2016). Mobile banking is another service offered by the banks where balances can be checked; payments can be made, loan application and transaction of accounts using the mobile phone. The personalized banking facilities are used to by individuals who have a high net worth. These individuals are said to be wealthier than any earnings of an average individual, and they can also have access to numerous investments (Peppard and Ward, 2016).

Most banks worldwide usually deal with the exchange of foreign currencies in different parts of the world. Customers mostly require this kind of service whenever they are traveling from one country to another. This transaction is meant to settle down the international trade dues that might have risen in that year. Banks also offer credit cards which allow the holder to buy goods and services where the credit card is exchanged and is later on returned to the holder and interest is earned in that case (Peppard and Ward, 2016).

Also, debit cards are often used by the customers to withdraw the money from the cardholders' account and use it to buy goods and services. It is a safe and reliable means because the only item required for the transaction to take place is a Personal Identification Number (Peppard and Ward, 2016). Servers and account holders in the bank offer deposits to those clients who save their money and can only spend it profitably. The bank enjoys when people deposit their cash in their accounts because it enhances the growth of a bank, most clients prefer saving their money in the bank because of the interest rates were given.

A detailed discussion of financial needs of the company in the discussed products and services offered by the bank.

For a company to offer this services to its customers, it is supposed to be equipped with enough money for it to function effectively and efficiently. Every bank in the world provides some loans either to an individual or a company. For the personal loans they are said to be unsecured and only ranges from hundreds and thousands only, the lenders are required to have some documents meant for verification of income and to act as an evidence of the assets worth the amount borrowed by the customer (Hammoudeh and Choi, 2006). The lenders also are supposed to indicate the interest rates on the loans where in this case the interest rates are high.

Furthermore, when it comes in the case of credit cards the bank is required to have enough credit cards that have money, this is because the number of customers may increase. The clients using credit cards are usually satisfied that the loan taken will be paid at some later date (Hammoudeh and Choi, 2006). The bank benefits mostly from credit cards because most individuals and companies prefer to use them because they are widely accepted in many departments. Furthermore, for one to acquire a credit only one page of the application is required, and the bank also is supposed to present its requirements and qualifications. The company's interest rate should also be stated; this is where the company earns its income and reduces its expenses (Hammoudeh and Choi, 2006).

In the case of the online banking, the bank is required to have more money for the sustainability of their workers on the internet. Most individuals prefer to conduct their bank transaction via the internet because it is an available means and it reduces the labor cost. The banks also offer home equality loans to their customers who have built up houses (Hammoudeh and Choi, 2006). These loans are used in building houses, and the bank is required to have the money when offering credit to the qualified client. The bank is also expected to state the interest rates that it has on the loans to be provided to the client. These loans are usually crucial for the bank because it increases the bank's net worth and reduces the expenses (Hammoudeh and Choi, 2006). The only lose the bank can face that is...

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