How to Start your Own Private Bank

Starting your own bank is not rocket science because every bank developed from an idea or individual. The banks are highly profitable, capital intensive, and competitive.
They are predominantly public or private sector establishments. Things to consider are licensing, funding and identifying a niche.
The next step is what type of bank Are you interested in establishing. Private individuals should consider microfinance banking and community banking. Microfinance banks require low startup unlike commercial or retail banks. 
Types of Banks
There are different types of banks that serve different purposes. The different categorizes focus on providing specialized services to their immediate community.
Their operational requirements are structure against the purpose and guideline of their establishment. Common types of banks are retail banks, commercial banks, credit unions and investment banks.
We have the central bank, mutual banks, online banks and savings and lo banks.
Central Bank
The central bank statutory duty is to manage the economy. Every country has a central bank that performs this function. They also have the registration and supervisory roles of banks in the country.
Credit Union
Credit unions are predominantly owned by customers. They are non-profit organizations that offer commercial bank services to members. The members are usually localized and share identical characteristics or occupations.
Commercial Banking
Commercial banks offer savings and checking accounts to customers. They are the most common type of bank in the financial system. Other functions include loans, lines of credit and opening domiciliary accounts.
Retail Banks
Retail banks are the most popular type of banking that offer same services as commercial banks. They attend to the general public and provide debit/credit cards, savings and checking account.
How to Start a Bank in India
Investment Bank
Investment banks work predominantly in the financial markets. They provide financial assistance to retail/ commercial banks including companies.
Online Banks
Online banks have no physical location and works entirely online. All transactions are carried out online such as payments, purchase and checking services.
Community Banks; Community banks are local depository and lending establishments.
Public Bank Products
Public bank products include corporate banking services, insurance and finance. They provide mortgage facilities, investment banking and private equity management.
Other services are assets management, saving security, credit card issuance and wealth management.
Private Sector Banking
Private sector banks provide payment solutions, wealth management, personal loans and investment banking. Other services are mortgage loans, consumer banking. Others are corporate services, insurance and private services.
The type of bank requires specific sums deposited to regulatory banks and registration fees. Commercial banks require about $10 million to $20 million USD.
Small community banks and microfinance banks could capitalize with less than $1 million USD. There are many ways to secure funding subject to central banks recommendations. You could use venture capitalists, angel investors, core investors and crowdfunding.
Management Team
The management team should have 8 -10 years cognate experience. They should be registered members of chartered institute of management.
Your boards of directors are usually regularized by the regulatory bank and should not comprise more than 5 members. The terms of establishment of management teams might differ in each country.


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