Bank Management

Retail Banking Products

Integrated course, 3.00 ECTS

 

Course content

This course discusses the products used in retail banking, ass well as their pricing. A focus is set on risk and profitability control within the retail business of a bank.

The core contents of this course include:
[1] Overview of retail banking; range of product; features of the private and retail banking business;
[2] Finance of private clients and small businesses;
[3] Lending: assessment of the creditworthiness; collaterals; consequences of a payment default; loan monitoring; covenants;
[4] Mortgage-backed lending; basics of real estate valuation; mortgages; management of interest rate risk; interest-free periods;
[5] Pricing: loans, asset management services, retail banking services (current accounts, credit cards etc.);
[6] Private banking: saving products, life insurance, cross-selling.
Optional contents can include:
[7] Basic concepts of private wealth management;
[8] Stages of the product development process: initial stage to product control.

Learning outcomes

Graduates have detailed knowledge of products and pricing in retail banking. They understand the cornerstones of creditworthiness analysis in retail banking and understand the lending requirements resulting from the bank's risk management and capital backing. They also recognize the sales and cross-product opportunities for risk-adjusted earnings growth.

Recommended or required reading and other learning resources / tools

References: Bartmann et al (2011): Retail Banking - Zukunftsorientierte Lösungen im Privatkundengeschäft. Effert/Köhler (2004): Wettbewerb der Vertriebssysteme, Gabler. Effert/Ronzal (2005): Erfolgreiche Vertriebsstrategien in Banken, Gabler. Kramer/Gulich (2008): Strategische Erfolgsfaktoren im Privatkundengeschäft der Banken, Europ. HSV. Müller (2011): Banken im Wandel des 21. Jahrhunderts: Erfolgsrezept Multikanalvertrieb, BoD. Schmoll/Ronzal (2011): Neue Wege zum Kunden, Gabler. Schwarzbauer (2009): Modernes Marketing für das Bankgeschäft, Frankfurt School.
Academic journals: Die Bank, Bankarchiv, Bank Magazin.

Mode of delivery

3 ECTS: ILV

Prerequisites and co-requisites

none

Assessment methods and criteria

ILV: final exam, assessment of active course participation