Advantages of private sector banks
As far as employees are concerned these banks are more beneficial because of job security and once an individual gets into public sector bank he or she does not need to worry about retrenchment which is the case with private sector banks, though at higher levels of management private banks pay higher remuneration to its employees but at lower levels the exploitation is more in case of private banks as compared to public sector banks.
No Room For Failure The success of a private banker or stockbroker hinges on her ability to make smart decisions for her clients and garner a consistently positive return on investments. This may not sound like the best of incentives in terms of encouraging employees to do better but it certainly attracts a lot of talent looking for secure job roles.
Management of private sector banks
According to the open product platform, private banks make their case that there is no incentive that push the proprietary products making the clients will always get the very best of what was offered by the banks. Private banks have come up with custom made packages that will suit each client depending on their needs and financial ability. Though not everyone can be a top performer but those who do not perform very well or are not comfortable taking on challenging roles may not be able to benefit much. The main reason for this is security purposes so that there is a slim chance of the sector going down. Success on a small scale may not be enough to gain a firm foothold in the private banking industry, where large firms measure success in billions of dollars. Lesser Job Security: This is one of the biggest disadvantages with private banks that despite occupying the best of positions, there is no assurance that one cannot be asked to leave, if the situation demands it. This also leads to large financial rewards for the fund manager. These include home and a car for higher-ranked professionals along with some common benefits for most roles. Additional Benefits: Employees are also offered special benefits including higher rate of interest on fixed deposits and paid holidays among other things. Some of the possible reasons might include the banking industry or the banking institution in question passing through a bad phase. Leaving the control of the banking sector could be risky since any form of mismanagement could result to a collapse of the sector. Bankers in the private sector normally work very closely with their clients in order to establish the investment goals or the specific needs of their clients.
Fast-Paced Career Growth: Professionals can grow at a fast pace and acquire higher positions along with greater emoluments within the first few years. Although those who perform well could be selected for prestigious training programs at some of the best institutes.
This propels even average performers to do well and keep themselves in the hunt for the next promotion. The private banks also go an extra mile to ensure that they come up with tailor-made solutions that caters specifically for the needs of each client.
However, the approach should preferably be simple and based on the skill set, interests and capabilities of the individual more than anything else. Better Work Hours: Work hours are pre-defined and there is no rush to meet targets, no overbearing sense of competition and no additional working hours as well.
Private bank vs govt bank salary
Banking can be a taxing career for any individual as it requires presence of mind, good communicative abilities and interest in finance and accounting as well. These include home and a car for higher-ranked professionals along with some common benefits for most roles. The use of parent brand is mainly to gain confidence and trust from clients. Although there are challenges and risks involved with the private sectors, the benefits outweigh the risks. Bankers in the private sector normally work very closely with their clients in order to establish the investment goals or the specific needs of their clients. Depending on the role, skills sets could vary but as we have already discussed, those who believe in instant recognition and performance-based rewards should opt for a career in private banking. Another advantage of these banks is that there are less hidden charges and also lower limit of amount to be held as minimum deposit as far saving account is concerned, so for example in case of private banks minimum balance to be maintained is anywhere between to rupees whereas in case of public sector banks it is rupees and in case of student account and no frill accounts it is 0. Regular Training Programs: There is a lot of stress on conducting training programs at regular intervals to help employees upgrade their finance, people and technical skills and be able to perform better. Public Sector Banks: Pros: Less Competitive Work Atmosphere: In general, the work environment is comfortable and there is usually no rush to meet some pre-defined targets. As of , The Foreign Account Tax Compliance Act requires every private banking relationship manager to confirm the identity of every client with the firm, including verification of U. Customers are better placed to earn high rewards when banking with private banks. Conclusion There are multiple advantages of banking with the private sector. Success on a small scale may not be enough to gain a firm foothold in the private banking industry, where large firms measure success in billions of dollars. Fast-Paced Career Growth: Professionals can grow at a fast pace and acquire higher positions along with greater emoluments within the first few years. Lesser Motivation to Perform Better: With little competition and fewer performance-based rewards, there is but little motivation for average performers to do better and prove their mettle.
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