What is transaction banking?
Transaction banking is the process of money transfer, typically for corporates by banks. It includes commercial banking products, domestic and cross-border payments, professional risk mitigation for international trade and the provision of trust, agency, depository, custody and related services.
Today, you may or you may not know that every day billions of transactions are made around the world. It’s a tremendous and an extraordinary amount of money which is being transferred from here to there.
What the word ‘transaction’ simply means over here is, the process of money transferring from one place to another. Nobody today, especially the corporate world can ever deny that transaction is one of the most critical parts of any business, and therefore the banks all over the world need to be involved in this area, what we call ‘transaction/transactional banking’.