The way of banking that is availed by businesses and organizations is called commercial banking. Commercial banking is also known as Business Banking. It is specially designed to meet the needs of institutions, small businesses, etc. Businesses are provided with different products and services like loans, accounts, deposits, and much more.
Features of Commercial Banking in the UAE
Although the name suggests that commercial banking is about the commercial needs of a business, it provides several other services as well, like
- Loans – Business owners need money to run their business. Commercial banking helps businesses that have just started or need to buy equipment, etc. by providing financial assistance.
Short-term finance – Commercial banking customers can avail Short-term credit facility. A loan will be provided for a short-term to meet quick requirements like paying employees salary, buying any inventory until the client makes payments, etc.
- Accounts – Commercial Banking customers can avail both savings and current accounts. Current accounts are provided to all the employees where the salary transfer can happen and savings accounts are for saving profits at high-interest rates.
- Credit Cards – Businesses under commercial banking services, can get business credit cards that provide a good range of benefits. Some banks also provide credit cards for the employees of organizations that are availing business banking.
- Wealth Management Services – Commercial banking customers can avail wealth management services like mutual funds, insurances, etc. at an organizational level. Companies can also avail retirement schemes for the employees.
- Payment Methods – Similar to other banking approaches, business banking customers get debit cards, cheque books, etc. as payment instruments.
- Online Banking – A separate corporate online banking platform is provided for commercial banking customers. They can set automatic payment options like for salary payments, bills, etc. and carry out business transactions easily.
Check: Things to know about Digital Banking in UAE
Benefits of Commercial Banking
- It separates business and personal banking usage.
- Commercial banking customer tend to get a loan easily with the quick processing
- Can get your business account insurance for high coverage and good benefits
- Monthly transactions can be done easily
- From small business to large corporates, any organization can get benefited by commercial banking
- Quick short-term loans can help businesses operate the business without interruptions
- Some banks also offer low or no charges while opening checking or savings accounts in bulk for employees by organizations
Also, check: What do you need to know about NRE accounts
Commercial banking vs Personal banking
Though most of the products and services provided under Personal banking and Business banking are the same, the features and working of the products differ.
Business banking customers are provided with some privileges like extra cheque books, more number of transactions per month, etc. It works at the organizational level whereas Personal banking or retail banking is for personal use.
Commercial Banking vs Investment Banking
Many people assume that commercial banking is similar to investment banking but these are two different ways of banking. Investment banking provides services like managing assets, buying securities, etc. for investors. They provide their clients with sound investments. On the other hand, as mentioned, the commercial banking service is provided for businesses to fulfil banking needs.
Some Popular Banks in UAE that provides Commercial banking Service
- ADCB
- ADIB
- RAKBANK
- Emirates NBD
- Emirates Islamic Bank
- HSBC
- FAB
- Standard Chartered Banking
- Mashreq
- CBD
- CBI
- Samba Bank
- Noor Bank
- Sharjah Islamic Bank
Almost every top bank in the UAE provides commercial banking facilities for its customers. Business owners can visit the bank and provide the right set of documents according to the service required to become a commercial banking customer and avail the benefits of the same that helps in running a business smoothly.
About the author
Nikitha is a Senior Analyst at MyMoneySouq.com. She has been writing about personal finance, credit cards, mortgage, and other personal finance products in the UAE. Her work on Mortgage loans has been featured by the GulfNews and other popular Financial Blogs in the UAE.
