Business Services

Services are separately identifiable, essentially intangible activities that provide satisfaction of wants and are not necessarily linked to the sale of a product or another service. Goods are physical products capable of being delivered to a purchaser and involve transfer of ownership from seller to customer.

e-banking is electronic banking or banking using electronic media. It allows a customer to conduct banking transactions over the internet using a computer, mobile telephone or handheld device.

Advantages of e-banking:
- It facilitates digital payments and promotes transparency in financial statements.
- It provides 24 hours, 365 days a year service.
- Customers can make permitted transactions from office, home, or while travelling.
- It encourages financial discipline by recording every transaction.
- It gives greater customer satisfaction, wider access, less risk, and better security because customers need not carry cash.

The main telecom services available for enhancing business are:

- Cellular mobile services: mobile voice, non-voice, data and PCO services.
- Fixed line services: fixed voice, non-voice and data services for long-distance communication.
- Cable services: one-way entertainment-related media services through cable networks.
- VSAT services: satellite-based communication useful for tele-medicine, tele-education, market rates and newspapers-on-line.
- DTH services: satellite-based media services received directly on television through dish antenna and set-top box.

These services help business by making communication fast, accurate and efficient.

The important principles of insurance are:

- Utmost good faith: both insurer and insured must disclose all material facts honestly. Example: a person taking life insurance must disclose health details.
- Insurable interest: the insured must have a pecuniary interest in the subject matter. Example: a businessman has insurable interest in his stock and machinery.
- Indemnity: in fire and marine insurance, the insurer compensates the actual loss. Example: fire insurance pays only the loss suffered, not profit.
- Proximate cause: only the nearest, most effective cause covered by the policy is considered. Example: if damage is caused by several reasons, the direct cause is checked.
- Subrogation: after compensation, the insurer gets the insured’s right over the damaged property.
- Contribution: if there is double insurance, insurers share the loss proportionately.
- Mitigation: the insured must take reasonable steps to reduce the loss, such as trying to save goods from fire.

Warehousing is the storage of goods in a scientific and systematic manner so as to maintain their original quality, value and usefulness. Modern warehouses are logistical service providers that make goods available in the right quantity, at the right place, at the right time and at the right cost.

Functions of warehousing:
- Consolidation: receives goods from different plants and dispatches them together.
- Break the bulk: divides large quantities into smaller lots for customers.
- Stock piling: stores seasonal or excess goods for future demand.
- Value added services: packaging, labelling, grading and mixing.
- Price stabilisation: balances supply and demand to control prices.
- Financing: advances money against goods stored in the warehouse.

Services are separately identifiable, essentially intangible activities that provide satisfaction of wants and are not necessarily linked to the sale of a product or another service.

Their distinct characteristics, known as the five Is, are:

- Intangibility: services cannot be touched; they are experienced.
- Inconsistency: services vary from one customer to another and from one situation to another.
- Inseparability: production and consumption happen simultaneously.
- Inventory (less): services cannot be stored for future use.
- Involvement: the customer participates in service delivery.

The main functions of commercial banks are:

- Acceptance of deposits: banks accept money in current, savings and fixed deposit accounts. Example: a customer keeps money in a savings account.
- Lending of funds: banks give loans and advances such as overdrafts, cash credit and term loans. Example: a business takes a term loan to buy machinery.
- Cheque facility: banks collect and honour cheques. Example: a customer deposits a crossed cheque into his account.
- Remittance of funds: banks transfer money from one place to another through draft, pay order or mail transfer. Example: sending money to another city by bank draft.
- Allied services: bill payment, locker facility, underwriting, buying/selling shares, payment of insurance premium, collection of dividend, etc. Example: using a locker to keep valuables.