Business Communication in Financial Institutions 96th BPE: Short Notes

(a) Fintech

Fintech stands for Financial Technology. It means using technology to provide financial services.

It makes banking and financial services faster, easier, and more convenient. Today, fintech is an important part of modern banking.

Common fintech services include: Mobile banking, digital wallets, online payment systems, blockchain, robo-advisors, and peer-to-peer lending.

In Bangladesh, popular examples are bKash, Nagad, Rocket, and Dutch-Bangla Mobile Banking.

Fintech offers many benefits:

It reduces the need to visit bank branches.
Customers can transfer money instantly.
They can pay bills online and monitor their accounts in real time.
Loan processing also becomes faster.
Fintech also promotes financial inclusion.
It brings banking services to people in remote areas and to those without access to traditional banking.

However, fintech also has some challenges:

Cybersecurity is a major concern.
Data privacy is another challenge.
Financial institutions must also comply with regulatory requirements.

Overall, fintech has changed the way people use financial services. It has made banking more efficient, accessible, and customer-friendly.

(b) Letter of Appreciation & Letter of Complaint

A letter of appreciation is a formal letter written to express thanks and recognize a person’s or organization’s good work, service, or contribution. It is a good news message. Therefore, the appreciation should be expressed at the beginning of the letter.

The letter should be sincere, specific, and genuine. It should clearly mention what is being appreciated and why it is important. It should end with goodwill and a positive closing.

In banking, a letter of appreciation may be sent to a high-performing employee, a loyal customer, or a service provider for outstanding service.

A letter of complaint, also called a claims letter, is written to report a mistake, defective product, or unsatisfactory service. Its purpose is to seek a fair solution. The writer should remain calm, polite, and professional.

Angry or offensive language should be avoided. A good complaint letter should explain the problem clearly. It should mention the loss or inconvenience caused. It should also state the action expected from the recipient.

For a quick response, the letter should be sent to the head of the responsible department.

(c) Advertisement as Business Communication

Advertisement is an important form of external business communication. It is used to inform, persuade, and remind customers about a company’s products, services, or brand. It also helps attract new customers, increase sales, and promote special offers.

In banking, advertisements are widely used to promote deposit schemes, loan products, credit cards, and new banking services.

An effective advertisement should be truthful, clear, and responsible. It should support its claims with facts or evidence. It should not mislead or manipulate customers.

Advertisements should also respect public welfare and be especially careful when targeting children. Good advertisements often use emotional appeal, logical appeal, and credibility to influence customers.

Today, social media has become a popular advertising platform. It helps businesses reach specific customer groups. However, ethical standards must always be maintained.

Sponsored content should be clearly disclosed. Advertisements should never be presented as ordinary social media posts. Honest and responsible advertising builds customer trust and strengthens the company’s reputation.

(d) Agreement and Contract

An agreement is a mutual understanding between two or more parties about a particular matter. It may be written or verbal. It may be formal or informal. An agreement is based on the consent of the parties. However, it is not always legally binding.

Some agreements create only moral or social obligations. Therefore, not all agreements are contracts. For example, two bank employees may verbally agree to exchange their work shifts.

A contract is a legally binding agreement between two or more parties. It is enforceable by law. A valid contract must contain an offer, acceptance, consideration, and legal intention. In many cases, it must also be in writing. If any party fails to perform the contract, legal action may be taken.

In banking, contracts are used for loan agreements and other financial transactions. For example, a loan agreement between a bank and a borrower is a contract. It clearly states the repayment schedule, interest rate, and collateral.

(e) Legal Notice and Show Cause Notice

A legal notice is a formal written communication sent before starting legal action. It informs the other party about a legal claim or grievance. It also allows the recipient to settle the matter before going to court.

In banking, a legal notice is usually sent to a borrower who fails to repay a loan after repeated reminders. The notice should clearly mention the grievance, the required action, and the time allowed for compliance.

A show-cause notice is a formal notice issued by an employer, regulator, or other authority. It asks a person to explain or justify a particular action or misconduct. It is not a punishment. Instead, it gives the person a fair chance to defend themselves before any action is taken.

In banking, Bangladesh Bank may issue a show-cause notice to a bank for violating regulatory rules. A bank may also issue such a notice to an employee for misconduct or negligence.

(f) Grapevine

Grapevine is also known as informal business communication. It refers to the informal exchange of information among people in an organization. It does not follow official communication channels. It develops naturally through personal relationships.

Employees, managers, customers, and others may take part in grapevine communication. For example, an employee shares news of a promotion with a colleague, and the news spreads throughout the organization.

There are four common types of grapevine communication.

In the Single Strand Chain, information passes from one person to another.
In the Gossip Chain, one person shares information with many people.
In the Probability Chain, information spreads randomly.
In the Cluster Chain, one person shares information with a few selected people, who then pass it on to others.

Grapevine has both advantages and disadvantages. It spreads information quickly and improves social relationships among employees. It also provides quick feedback and emotional support.

However, grapevine often spreads rumors and inaccurate information. It may reduce productivity and create misunderstandings. If not managed properly, it can also damage the organization’s reputation.