What Is Banking Correspondent How It Works} Finance
What is a bank correspondent ? Let’s find out with this article. To begin with it is not just banks or financial that can give us that financial help in times when the lack of money makes things harder. We always need money, so we work, but at the beginning of each year this financial tightening is more extreme.
Along with the beginning of the year, besides the foci of artifice, there are also many accounts from the previous year and credit card invoices, to weigh even more, such as the IPVA, IPTU and the Matricula and children’s school material list. Who has only one son, beauty, for those who have more than one, will need more money to meet this need.
Luckily at times like this, we can apply for a personal loan in the dozens of companies that have appeared online and also in credit shops on city streets. Borrowing money will ease financial pressure and help pay some expenses for the month, for those who have easy access, but not everyone has easy access to get credit from financial institutions.
To facilitate this access to credit, many companies have become banking correspondents, especially the Fintechs that have arrived in Brazil with full force. Fintechs are mostly bank correspondents who have placed themselves in the gap between the banking industry and the borrower that was often overlooked by the traditional credit system.
The banking correspondent is not just for borrowing money, in many cases his services encompass even the financial organization and personal finance consulting. Want to know what banking correspondents are and what they do ?
What is a bank correspondent?
The banking correspondent is a legal entity that acts as a mediator between financial institutions (banks and financial institutions) and clients. Any corporate entity or association can be a correspondent thanks to the resolutions of the Central Bank that allows companies to provide services of a financial nature.
In practice, credit institutions, banks and financiers outsource credit operations and specific services by hiring bank correspondents to perform work at various stages of the funding process and credit completion to serve clients.
Pursuant to Bacen Resolutions 3110 and 3156 of 2003 and valid to date, any banking correspondent may provide services to banking institutions and financial entities that are duly authorized by the Central Bank of Brazil.
I want to be a bank correspondent
This status is suitable for both small and large companies, if the company is incorporated can be a correspondent bank. The correspondent acts as an intermediary agent between the creditor and the borrower, or between a financial partner with other financial institutions. Loans and services performed by correspondents have lower costs when compared to those that would be if the weight of the cost of agencies and own teams in the service.
Examples of what a bank correspondent does
An example of a banking correspondent is the Lottery Houses, the service performed is to receive payments from accounts and to carry out some banking transactions in these establishments. However, there are banking correspondents with other financial natures that perform other types of services for the population.
Below, we list some of the corresponding services you can perform:
- Applying for financing, personal and commercial loans
- Registration and credit analyzes
- Receipt and payment of bills
- Charging service
- Proposals for openings of demand deposits accounts
- Data processing and monitoring activities
- Debit and credit card applications
- Investment funds (applications and redemptions)
- Proposed openings for time deposits
Correspondents can also complete credit and debit card applications for customers interested in this product. When talking about debit and credit cards for retirees and pensioners and for university students, correspondents are champions in this type of funding.
Loan can be made by online banking correspondents
To tell you the truth, loans in correspondent banking are the majority of current operations, in addition to credit cards currently released, they are made thanks to the banking correspondent who own websites, platforms and credit applications created exclusively to capture, analyze, approve and free personal loan without bureaucracy within minutes.
On the internet you find many credit companies and online loans, these platforms carry out the whole process of the loan, from the capture to the online release. The transaction is 100% online. It’s fast, it’s safe and it’s smart. All designed to save on customer time and minimize credit costs.
What are the rules when applying for personal credit in the corresponding
Online personal credit has no secrets, it usually follows the traditional guidelines of a physical financial institution, the difference lies in the method and intelligence adopted in the online system that only the internet can make via mobile phones, tablets, laptops and computers.
Interest rates are another differential of the banking correspondent, in a cold comparison, the interest rates applied on average are lower than the interest rates applied in traditional banks and financial institutions. This is because the cost of credit is better than those made in the traditional way.
With the bank correspondents you can borrow money for almost all purposes, you make the loan application and if approved use the money for your company, business or to pay debts and bills. You decide!