What is Bancassurance?
• Bank + insurance = bancassurance
• Bancassurance simply means selling of insurance products through banks.
• It is basically a partnership or relationship or tie-up between a bank and an insurance company, whereby the insurance company uses the bank sales channel in order to sell insurance products and expand its market reach customer base.
• It benefits banks, as they earn risk-free free-based income because insurance companies pay some amount to the banks.
Three types of insurance products can be sold by banks. They are
1. Life insurance
2. Health insurance
3. General insurance
Swift Code Explained
• SWIFT stands for SOCIETY FOR WORLDWIDE INTERBANK FINANCIAL TELECOMMUNICATION.
• It is a cooperative society established in 1973 by Carl Reuterskiöld who is the CEO of Belgium based society for worldwide interbank telecommunication.
• It operates in more than 239 countries in the world at present.
• It provides a network that enables financial institutions to send and receive information about financial transactions in a secure, standardized and reliable environment.
• For money transfer – based transactions, SWIFT assigns each participating member with a unique code commonly known as SWIFT CODE.
• Prior to the SWIFT CODE, there was TELAX.
COMMUNICATING THROUGH SWIFT AND
NEWYORK BANK ——————————
—————————— ————> SBI BANK
TRANSFER MONEY THROUGH SWIFT CODE
The banks will generate the SWIFT CODE.
SWIFT CODE / BANK IDENTIFIER / ISO 9362
• It is 8 or 11 characters unique code which is allotted by SWIFT to every financial organization.
• The 11 characters represent as follows
• The first 4 characters represent the bank name (always alphabetical).
• The next 2 characters represent the country’s name (always alphabetical)
• The next 2 characters represent location or city code (alphanumerical)
• The next 3 characters (optional) represents branch code (alphanumerical)
• It is also used in wire transfers(means a manual form of sending or transferring money).