You will not find a better solution as specific, as detailed, and as automated. Enter some main assumptions and start entering your financial data into the clearly marked cells. Use it for a bank business plan but also for ongoing monitoring of your bank business.
Do you want to know what it takes to start your own bank? Have you ever felt so unsatisfied with your bank before? Or you need a sample bank business plan template? If YES, then i advice you read on If you have found yourself disgusted about how things are run in your bank, then you might fall into the category of some folks who wish they could own a bank.
It is good to point out from the beginning that starting a bank is not an option for you if you do not have the patience to go through all the conditions set by the Central bank of your country. Now what is a bank?
A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank is the connection between customers that have capital deficits and customers with capital surpluses.
Due to their influence within a financial system and the economy, banks are highly regulated in most countries. Most banks operate under a system known as fractional reserve banking where they hold only a small reserve of the funds deposited and lend out the rest for profit.
They are generally subject to minimum capital requirements which are based on an international set of capital standards, known as the Basel Accords.
Now many people might say owning a bank is beyond their widest dream.
However, I want to state that it is not impossible to own or control a bank. You just have to envision it, and work towards it. To prove to you that owning is not impossible, I will give references of individuals who have started a bank from scratch and built their banks into world class standard.
Back then, doing business with the banks was slow and cumbersome; plus the banks lacked innovative drive. However, the system changed when a few technology driven young individuals stepped in and revolutionized the banking industry. Today, these individuals are self made.
The opportunity is even now accessible, given the fact that the banking sector has now been categorized into: The first way to do it is to buy a controlling stake in an already existing bank; whether a publicly quoted bank or a privately owned bank. However, this might prove very expensive and challenging as you may be up against other shareholders; who will fight tooth and nail to defeat your purpose.
The second option is to start your own bank from scratch and build it your way. Well, this article will be focused on starting your own bank from scratch and I will be using the banking system in Nigeria as reference point. However, this does not mean the ideas shared cannot be replicated in your own country; whether USA, U.
K, Canada, Ghana, Kenya, etc. Why You Should Start your Own Bank Just like every other business, owning a bank can be a profitable venture if the marketing and operations are run efficiently. Once your bank begins to enjoy customer goodwill, you are made. You, the bank owner gains access to a steady supply of cash that you can channel into your own personal businesses though you have to follow some legal procedures.
Anybody that has the money, meets the laid down conditions and is free from financial frauds can acquire the license to start a bank. As a matter of fact there are different conditions for starting different categories of banks. For instance the condition for starting a commercial bank is different from the conditions of starting a micro finance bank.
So also the conditions and requirements for starting a community bank are different from the conditions and requirements of starting a Micro finance bank.
If you are convinced that you want to start your own bankthen the following steps might definitely steer you in the right direction. First understand the financial services sector The financial services sector is quite a complicated one and the reason is because it is a knowledge-driven industry.
You need a high financial IQ to understand the modus operandi of the banking industry and financial services sector at large. To operate in the banking sector, you must have a first-hand idea of how the financial services industry works.
You must know and understand the various indexes, terminologies and principles of banking. Gain some banking experience To successfully start a bank, you need broad experience; so as to be able to tackle the challenges of the banking sector.
And you definitely cannot gain such experience by reading a book; you gain it by being practically involved in the industry. Take for instance, Mayer Amschel Rothschild started as a small scale money lender. Jim Ovia, Fola Adeola, Tony Elumelu and Ladi Balogun were once employees of various banks before they resigned to start their own bank.
But you must definitely have business sense and possess the ability to spot talented high skilled individuals. You can employ or bring on board someone with the needed skills and make that person a front man; while you run things from behind the scene.Updated world stock indexes.
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For instance, in the sample plan, the Executive Summary, which is the last section of the Business Planning Wizard, is presented first in order to emphasize the most impressive features of the business. Compliments & Complaints. Check FAQs, raise Service Request, share compliments or raise complaints.