Business Communication in Financial Institutions 97th BPE: Short Notes
(a) Horizontal Communication
Horizontal communication is the exchange of information between employees or departments at the same level of an organization. It is also called lateral communication.
Its main purpose is to improve coordination, cooperation, and teamwork. It helps employees work together to achieve common organizational goals.
Effective horizontal communication creates accountability and builds a sense of unity. It also helps solve problems quickly and improves coordination between departments.
Clear objectives, proper communication channels, and good discipline make horizontal communication more effective. Today, organizations also use collaboration tools such as Slack, Microsoft Teams, and Notion to improve communication and reduce unnecessary meetings.
In banking, horizontal communication plays an important role. For example, the credit analysis department shares loan information with the risk management department before a lending decision is made.
(b) Credit Refusal
A credit refusal is a message sent to inform a customer that their credit application has been rejected. It is a sensitive type of business communication.
Therefore, the message should be polite, respectful, and professional. It should avoid language that may hurt the applicant’s feelings.
A credit refusal message should follow the indirect approach. It should begin with a neutral opening or appreciation for the application. The reason for the refusal should then be explained politely.
If the refusal is due to poor credit history, the reason should be stated carefully without making personal remarks. If it is due to insufficient financial ability, the financial reason may be explained more clearly.
The message should end on a positive note. It may encourage the customer to make cash purchases or continue doing business with the organization in other ways. A polite closing helps maintain a good business relationship.
(c) Know Your Customer (KYC)
Know Your Customer (KYC) is a process used by banks and financial institutions to verify the identity and background of their customers.
It is a mandatory requirement before opening an account or starting a business relationship. KYC helps prevent money laundering, terrorist financing, and other illegal financial activities.
The KYC process includes collecting and verifying important documents. These may include the National Identity Card (NID), passport, TIN, recent photographs, proof of address, and source of income.
For business customers, banks may also collect trade licenses, company documents, and financial statements. KYC information should be updated regularly to keep customer records accurate.
KYC is an important part of risk management in banking. It helps banks identify suspicious transactions and reduce financial crime. It also protects the bank from legal and reputational risks.
In Bangladesh, all scheduled banks must follow the KYC guidelines issued by Bangladesh Bank. Today, many banks also use e-KYC to verify customer information quickly and efficiently.
(d) Digital Bank (DB)
A Digital Bank (DB) is a bank that provides banking services through digital channels. Customers can use mobile apps, websites, and online platforms instead of visiting physical branches.
A digital bank offers services such as account opening, deposits, fund transfers, loan applications, and customer support online.
Digital banks use modern technologies such as cloud computing, artificial intelligence (AI), big data, and APIs. These technologies make banking faster, easier, and more efficient.
Since digital banks have few or no physical branches, they have lower operating costs. As a result, they can offer better interest rates, lower fees, and faster services.
In Bangladesh, Bangladesh Bank has introduced the Digital Bank Licensing Policy to establish licensed digital banks. These banks must follow all banking regulations, including KYC, AML, and data security requirements.
Digital banks also support financial inclusion by providing banking services to people in remote areas and to the younger generation. They are expected to play an important role in building a Smart Bangladesh.
(e) Webinar
A webinar is a seminar, workshop, lecture, or presentation conducted over the internet. It is held through online platforms such as Zoom, Google Meet, Microsoft Teams, or Cisco Webex.
A webinar allows people from different places to join the same program without being physically present. It may be conducted live or recorded for later viewing.
Webinars are widely used in business communication and professional training. In the banking sector, they are used for employee training, product launches, regulatory briefings, investor meetings, and customer awareness programs.
Webinars save time and reduce travel and venue costs. They also include interactive features such as live chat, polls, and question-and-answer sessions.
However, webinars have some limitations. They depend on a stable internet connection. Technical problems may interrupt communication. Body language and face-to-face interaction are also limited.
Despite these challenges, webinars remain an effective and cost-efficient method of business communication.
(f) Infographics
An infographic is a visual presentation of information. It combines text, pictures, charts, diagrams, and other visual elements to explain a topic clearly. It helps people understand complex information quickly and easily.
Unlike simple charts or graphs, an infographic presents a complete story in a single visual format.
Infographics are widely used in business communication. They make reports, data, and processes easier to understand.
In banking, infographics are used to explain loan procedures, interest calculations, banking services, and financial literacy. They help customers understand information without reading long documents.
A good infographic should be simple, accurate, and attractive. The information should be truthful and easy to understand. Misleading or incorrect data should never be used.
When designed properly, infographics improve communication, increase understanding, and help people remember information more effectively.
