If you decided to start cooperating with Financial institutions (FIs), first of all, decide on the necessary list of services. The type of a suitable FI will depend on that.
You want to open a deposit account and put 10,000 somoni on it. In this case, two types of Financial institutions will suit you – commercial banks and Micro deposit organizations (MDOs). Other types of Financial institutions do not have the right to attract deposits.
Selection criteria of a most suitable FI for you may be different. We note the main ones below.
- The presence of FI's required list of services.
- Favorable terms of products (services).
- The speed of service.
- Available information about the FI for the customers.
- Convenient network of branches and service offices in the region.
- Convenient geographical location of ATMs and terminals.
- Stability and financial sustainability
- A good reputation and experience in the financial market of the FI.
- Other criteria (depending on the client's wishes).
One of the main criteria when choosing an FI is the period of its existence and activity in the financial market. According to experts, FI should function more than 5-6 years to earn a certain reputation. Also, an important point is the development of FI in crisis periods. The next criteria are the official financial statements: banks publish annual financial statements in the media, after its confirmation by an audit organization.
This requirement does not apply to microfinance institutions (MFIs), therefore, it is more difficult to access their financial statements, except when MFIs post information on their websites.
In cases when financial statements are available, it is necessary to study the following indicators: the size of the loan portfolio, its quality, liquidity, profit growth, etc. With a good assessment of these indicators, we can say that the FI is quite reliable.
Founders of a FI. It will be useful to learn about the composition of the founders of FI. If the founders include well-known companies or international financial institutions with a good reputation, this is another big plus. Conversely, companies or individuals with questionable reputations should be a signal to the client. You need to answer yourself the question: do I want to work with the FI?
Reputation of the FI. Every serious FI cares about reputation and constantly strives to improve it. It is important to have an impeccable reputation, which is formed from official sources: the media, rating agencies, expert reviews and market analysts. For the most complete picture of FI, feedback from both informal and official sources should be taken into account. Equally important are unofficial sources: the reviews of friends and relatives who have dealt with the FI. Reviews can say a lot, you only need to use the information correctly. For example, if the FI has negative information more than 90%, then most likely their work leaves much to be desired, 90-100% of reviews are difficult to fake. Conversely, if the number of good reviews exceeds 90%, then the organization is worthy of the attention of the future client. However, there are cases when competitors leave negative feedback.
Customer service quality. Each customer has their own idea of the level of service and its quality. Each organization develops and implements its own standards of customer service. An important point is how well established is the communication within the organization, as well as in the service of its customers. Pay attention to the availability, accessibility and openness of information on the information stands of the oranization. They should have all the information necessary for clients, in particular: the complaints mechanism; how quickly and transparently complaints are considered (a written response to the person who left a written complaint should be provided within 10 calendar days), as well as other information materials that would be useful to customers.
FI should fully satisfy you with the price and quality of service.
Every year the number of users of plastic cards is increasing all over the world, and Tajikistan is no exception. A plastic card is a personalized payment instrument that provides a person using the card with the possibility of non-cash payment for goods and/or services, as well as receiving cash in bank branches and ATMs.
The first Bank cards appeared in the early 50-ies of the last century. Subsequently, the cards began to improve, and in the 70s they first magnetic strip appeared on them, which contained information about the owner of the card and the state of his account, and in the 90s a chip was installed.
Bank cards can be debit, credit and also with an allowed overdraft. Debit card is a Bank plastic card used to pay for goods and services with the funds available in your account, as well as to receive cash at ATMs and cash desks.
A credit card allows you to make purchases or other transactions on credit, even if you have a zero or negative account balance.
Cards with permitted overdraft combine the advantages of debit and credit cards. With this card, you can use the amount that is available on the personal account, and in case of shortage of funds, you can use the credit provided by the Bank. Another advantage of a plastic card with an allowed overdraft is that the interest rates are lower compared to a credit card.
For example, you buy goods in the amount of 1000 somoni, and on the account you have 950 somoni. In this case, you can pay for the goods in the amount of 950 somoni. The Bank will give you a loan for 50 somoni, and at the end of the month the interest will be credited only for 50 somoni.
Plastic cards are divided into:
- Internal (local) – limited to the country. For example, in our country the main local card is "Korti Milli".
- International – used both abroad and within Tajikistan, the main international cards are VISA, Maestro, Mastercard and in recent years the Union Pay payment system has become increasingly popular.
Recommendations on the use and content of the bank card:
- It is desirable that the card is stored in a special place where the risk of getting water on it is minimal.
- If you carry the card with you, it must also be in your wallet (or purse) or other accessories that protect the card from damage.
- It is undesirable to keep the card near household appliances and audio equipment;
- Magnetic clasps are also undesirable on accessories in which you store your card.
The audience of the older generation received wages at the box office at work. Unfortunately, they had no choice and had to wait in line to get paid.
In modern conditions, enterprises and organizations, regardless of ownership, choose the services of banks to issue salaries for their employees.
What is it? Salary cards or "salary project" – a banking service, which is intended for enterprises and organizations, as well as business entities, for the organization of payments for salaries of their employees.
How it works? Employers enter into a contract with the Bank for the provision of services under the salary project. After that, the Bank opens a Bank account for each employee and issues a personal card to which wages will be transferred.
What is it necessary for? Salary project is convenient and profitable, because it allows you to minimize cash transactions, eliminate queues at the cash desk on the day of salary and reduce the cost of collection.
What is it like? The functions of bank cards issued to customers in the framework of salary projects, in fact, do not differ from the cards issued to retail customers. The salary card is the same plastic card, only the employer transfers your salary to it.
The benefits of payroll cards:
- cash-out services for holders of salary cards (we are talking about cases when the bank itself issued these cards and cash-out takes place in ATMs, post-terminals or cash desks of this bank) are carried out free of charge or at a lower rate.
- if there is a contract between the employer and the bank, the bank can open an overdraft for employees within the salary project.
Overdraft is the provision of money by the bank to the cardholder at interest for a short period of time. This term is translated as "over the project" - that is, the Bank allows you to spend not only the amount of money that is in the account, but also to borrow a little. Overdraft is not more than 40% of the salary.
- some banks charge interest on the account balance.
- the card can be used to pay for goods and services in trade and service enterprises. It can be either a local map or a map of the international system.
- salary transfer to bank account allows you to reduce cases of corruption and unjustified fees from the cashiers.
It is also necessary to remember that your servicing bank does not take interest for cashing out money. And if you use the services of ATMs of other banks, you will be charged a fee, depending on the size of the internal tariffs of each bank.
In all economically developed countries, credit history is one of the most important components in the life of the population. Thanks to the positive credit history, the population has access to sources of financing on more convenient and favorable terms.
In Tajikistan, every day, the value of positive credit history increases. Credit bureaus are engaged in data collection and processing, as well as the preparation of credit history reports, one of them is the Credit-Information Bureau of Tajikistan (CIBT).
What is credit history? This information is about when, in what amounts and in what FI you received (or have) a loan and how disciplined you are in fulfilling their obligations, that is, paying the loan. It is worth noting that in many Western countries, credit bureaus collect not only information about loans, but also about other payments of customers (for example: for electricity, for mobile communication, for utilities, as well as other payments).
Why is it so important to have a positive credit history? First of all, a positive credit history is the reputation of the subject. If the subject has a negative credit history, it closes the doors and access to financial resources of credit institutions.
What is credit history?