An overview of the banking sector

If we have to define banking then in simple words banking means the business activity of accepting and safeguarding money by other individuals and entities, and then lending out that money to earn profit. This business of banking is a very risky but is profitable to the economy of the country, depositors as well as the banks themselves.

Types of banks and their functions

Banking industry offers its services to different types of clientele, and on types of products offered and clientele served there are mainly six types of banks in the banking sector.

Retail banks: these type of banks offer very basic services to the consumers. Examples of such banks are saving banks and recurring and fixed deposits and the service they provide includes safe deposit boxes, saving and current accounting and different loans.

Commercial banks: these banks act as an intermediaries, who have to raise funds through the depositors and lending that raised money to borrowers. This type of bank can become bankrupt in one day if all the depositors come to withdraw their money on the same day, because they have to give time to borrowers to refund, unlike the depositors. There are only two types of these banks- public sector bank and private sector bank.

Investment banks: these types of banks help individuals, companies and government in raising capital by underwriting or act as the client’s agent in issuance of securities.

Cooperative banks: they provide cheap credit to their members and governed by province of state cooperative societies act.

Specialized banks: these types of banks provide financial aid to the industries, heavy projects and foreign trades. The banks that fall under this category are industrial banks, development banks and foreign exchange banks.

Central banks: these are the banks which implements monetary policy, issue paper money, acting as a banker to government and other banks and regulating the bank industry. One of the best example of this type of bank is Reserve Bank of India.

Challenges for the modern banks

Though banking is a very large sector and consists of big names like San Francisco Banking system, but like every other sector they also have tough challenges in front of them, few of them are: 1.Banks are still not making enough return on investments, that the shareholders require. 2. Many banks are not able to deliver that kind of experience that people are expecting especially in the field of technology. 3. The growth of financial technology companies has become a very big challenge for banks because not only they provide better technology but also are more adaptable than the banking sector. And at last, regulatory requirements are a very huge challenge because due their increasing needs banks spend a big chunk out of their budget on building a system to keep up with the escalating requirements.

Innovation in Beauty: 3 Ways Technology is Changing the Beauty Industry

It’s no secret that humans have technologically advanced more in the last 20 years then we have in the last 500 years and there is no sign of us slowing down anytime soon. Most people won’t know this but this leap in technology is also clearly visible within the beauty industry as well. This isn’t anything new technological advancements go hand in hand with advancements in beauty throughout the different civilizations in history. From the Victorian ages when only the rich and elite class wore makeup and applied perfumes and colognes due to it being very expensive. Then to the 1920s when thanks to mass production and industrialization beauty product’s and clothes could be made in bulks making it affordable to the great masses of people.
The recent technological advancements have truly had a big impact on beauty and will continue to do so into the foreseeable future. It won’t be possible to list every single impact that the beauty industry has felt due to advancements in technology because the list will just be too long. I will just list the top 3 ways technology has and will continue to impact the beauty industry in a big way.

1. The Internet Factor!

This has to be the biggest impact technology has had on the beauty industry it doesn’t depend what part of the industry you look at whether its clothes, beauty creams or beauty products. No matter where you are now in the world if you want some new beauty cream you can get it online. If your curious how a certain curling iron performs you can go online and read some customer reviews before you decide to buy. The internet has made the customers smarter they want the best product for their money. But this isn’t bad for the beauty industry because this has opened up the customer base it’s not local anymore its global and the demand for good new beauty products is never ending.

2. Access to at Home Specialist Devices

Technology has come so far that now it’s possible for men and women all around the world to buy and use specialist beauty devices which before to get access to you had to go to a high end beauty salon. A couple of very good example of these devices has to be at home laser hair removal machines and the at home laser for wrinkles.

In the past couple of years at home laser hair removal devices have been introduced to the market that are as effective as the laser hair removal treatment you can get at your medium level beauty salon. These devices are continuously upgraded every couple of years as technology evolves improving their results and making them safer. Its widely believed that the new models of at home laser hair removal machines in the coming years would be more effective than those you find in your local salons because those aren’t upgraded while these are.

The beauty industry has also been forced to re-accept past rejected devices which have improved themselves by taking full advantage of the technology available to them. A good example of this is the hair removal epilator which was rejected by women in the 90’s as being too painful and bulky. Now it’s made a quite a popular comeback due to the industry accepting technology as much as possible. The best hair removal epilators make use of hair lifting technology that actually lifts using special sensors within the device to build in frequency massagers that massage the skin and make it easier and more effective to remove the hair.

3. Customized Beauty

Due to the availability of technology beauty is becoming more and more personalized and it will continue long into the future. The days were men and women would just buy a simple cream for acne at their local pharmacy might leave us in the next 10 years. If you walk into a good level beauty salon or shop you would easily see the futuristic diagnostic tools. From the Harrods Ioma machine to the Organi DNA test each being used by major salons and beauty shops to bring a more customized and effective skin care solution to there customers.