Below is a brief summary of the webinar:

1. The different types of financial institutions
2. Explain the primary services offered by banks
3. Take a look at the evolution of banks and how they have moved from traditional to digital support models over time
4. Look in detail at the various personal account types available to choose from and their key features
5. Take a look at a tool which is available to help you find the right bank account for your needs
6. Work through a little case study on using Automatic Teller Machines (ATMs)
7. Provide tips for travelling outside of Canada, when a non-Canadian currency is required

The different types of financial institutions

Banks are a chartered, incorporated company, where clients do not have any voting rights.

• Incorporated companies are run by a board of directors that get elected by the shareholders of the company.
• They are regulated by the federal government.
• Examples include the big six banks in Canada.

A Credit Union / Caisse Populaires (Quebec) are cooperatives.

• Cooperatives are where clients are all members, with voting rights, also run by a board of directors.
• However, the board gets elected by it’s members / clients.
• These are regulated by the provincial governments.

Rapid advances in technology have forced banks to modify their support models to help people more effectively manage their time and money while on the go. Back in the early 1900’s, the first in-branch banking model with bank tellers was introduced, and today, we can simply tell our phone to transfer money using voice command. Around 1969, the first Automated Teller Machines (ATMs) were introduced to simply withdrawal funds using a debit card. Today, in addition to home currency withdrawals, clients can do a variety of things with their debits cards including US$ withdrawals and currency exchanges, deposits, checking of bank balances, bill payments, fund transfers between accounts, even accessing your accounts from an ATM of another financial institution. By 1994, that little plastic debit card was again taken one step further when Interac direct payments were first introduced, giving us the ability to pay for purchases directly in the store, as opposed to by cash or cheque. Surprising to some individuals, the first Online banking services were introduced around 1980, before Telephone banking which arrived around 1984. In addition to all the ATM services, with online and telephone banking, clients were able to manage credit and investment services without having to visit a bank branch, simply by speaking with a bank representative over the phone or using a computer. And the latest evolution of support for banking comes over the past 10 years, with mobile technology now offering Mobile banking applications, and we are going to take a deeper look at some of the new mobile functionality available today using iPhone and Android devices.

​​​​​​​

Types of accounts

Chequing accounts:

• These are generally used for day-to-day banking needs such as deposits, frequent withdrawals, cheque writing and bill payments.

Savings Accounts:

• Pay slightly more interest but limit the number of withdrawals allowed – e.g. you must maintain a minimum pre-established balance for a certain period of time.

  Interac e-Transfers

The Majority of the major banks have now partnered with Interac, leveraging their e-Transfer capabilities. A simple, fast and 100% secure way of moving cash around – to friends, family members, small businesses, etc. Simple in that it is easier than processing a cheque or withdrawing cash from an ATM – you can even now leverage voice recognition and tell Siri to transfer the money for you. 

​​​​​​​​​​​​​​Apple Pay/Samsung Pay

Apple Pay/ Samsung Pay is a mobile payment and digital wallet service that will allow users to use their mobile devices to pay for retail purchases by simply waving their mobile devices over a merchant terminal. You can leave your credit cards and debit cards at home and easily pay with just the tap/touch of your mobile device. Unlike paying with a physical card, using a digital wallet service in stores happens in seconds with your Smartphone or Smartwatch. Just hold your phone near the reader with your finger on Touch ID. 

Traveling abroad

While we will discuss in detail the benefits of using credit cards in module #4, here are a few travelling tips related to keeping you and your money safe:

Use an ATM:

As a convenience for clients on the go, many banks now offer the ability to withdraw funds in another countries currency directly from an ATM machine. For example, it is now possible to withdraw U.S.$ cash from ATMs of select Canadian banks for those spur of the moment trips down south, or, to withdraw U.S.$ cash from ATMs of some US banks, when already in the U.S. and using your Canadian banks Interac enabled bank card. Just be sure to investigate the bank's service fees before choosing this option, as fees will vary from institution to institution. A best practice is to match the symbols on the back of your debit card to those on the ATM (e.g. Interac, Plus, Visa, etc.)

Use a credit card:

Instead of converting cash, try using your credit card abroad - the daily exchange rate will automatically be applied. It’s also a great way to earn points …. more to come on that in the credit module.

Limit cash:

For safety reasons, carry small quantities of cash while travelling.

​​​​​​​ ​​​​​​​

That brings us to the end of the Banking Services module. If you have any questions, feel free to contact me at connor.ryan@rbc.com. The next lesson will be on Interest and will be held on Tuesday, February 19th at 6:30 pm. Contact us to register, or fill out the enrollment form on our website.

 

Thank you!

 

Be sure to check out our upcoming financial literacy webinars and other events here.