BNAD 100 Lecture Notes - Lecture 9: Debit Card, Gofundme, Session 9

• School: University of Arizona
• Department: Business Administration
• Course: BNAD 100
• Professor: Rob Mateucci

Document Summary

Session 9: banking: financial services industry = manages money for individuals, companies, governments, & other institutions: represents 7. 2% of u. s. gdp (2015, over 6 million people in the u. s. work in financial services (2015) Commercial banks: for-profit, some are online only. Credit unions: non-profit, local/regional, give loans at cheaper interest rates i. e. hughes. Crowd funding sites: people join together to loan money for a business idea. How does a bank determine how much interest to charge for a loan? i. e. gofundme, kickstarter. The bank determines the risk that the borrower will not pay back on the loan: higher risk = higher interest rate. Factors that determine a customer"s likelihood to repay a loan: age, income, other loans outstanding, history of paying bills, history of paying credit card balances. Credit analyst = analyzing risk, making lending decisions. Relationship manager = finding new customers, customer service. Branch manager = manages a local bank office.