There is no other institution that caters the needs of the people in terms of managing their finances but the banks. Modern banks are playing lots of new roles and making life of common consumer as well as businessmen easy. Modern Banks now do investing, lending, brokerage, real estate, borrowing, advisory and many functions in a very systematic manner giving the community lives in countries a new and advanced and obviously a very better look. In all, if we look at banking industry's history, it has improved lives of all segments of society, as well as supported economies at large believe banks can make an economy strong and they are just in economy as there is back bone in human body.
Generally, finance means management of money for your expenses. In broad term, finance is the science of funds management. Finance includes saving money and often includes lending money. The general areas of finance are business finance, personal finance, and public finance. Finance is also a money budget management. The field of finance deals with how money is spent and budgeted. It also deals the concepts of time, money and risk and how they are interrelated. Banking and finance are related to each other. Finance is used by individuals as personal finance, by governments as public finance, by businesses as corporate finance, as well as by a wide variety of organizations including schools and non-profit organizations. Finance is the need of the today world economy.
Finance is very important for business organization as it includes planning of financial resources, making of optimum capital structure and effective utilization of financial resources by deep analysis of cost of capital and capital budgeting tool. Like other technology, it can also increase the efficiency of business, so effective utilization with reasonable care is very necessary in Finance. It is very essential to run the business smoothly. It has been rightly termed as universal lubricant that keeps the enterprise dynamic. No business, whether big, medium or small can be started without an adequate amount of finance. From the conceptualization stage of a business, finance is needed to promote or establish the business, acquire fixed assets, make investigations such as market surveys, etc.
Finance plays an important role in our everyday lives regardless of our status and what institution we belong. From the money we use to buy food to save for the future, this is a result of our personal financial management. Once we lack resources, we rush into banks to apply for a loan to support our present needs. Bank caters most of the needs of their client from deposit to withdrawal, be it big or small investment. Our life will be easier if we will incorporate good financial planning into our life. Needless to say, banking and finance, like our heart, will keep us alive.