Banking Services

Transaction Banking - Part 1


Transaction banking refers to a range of banking services for corporate and institutional clients, including payment processing, cash management, trade finance, and securities services such as custody. In the post-financial crisis world, transaction banking has been re-evaluated as a business line within banks due to its stable returns and low capital requirements. The growth in global trade, especially in Asia, has also increased the demand from corporates for global transaction banking services.

This eCourse consists of two modules. Module 1 examines the background behind the growth in transaction banking as a distinct business line, the different services provided by transaction banks, and the impact of technology and regulations such as Basel III on the world of transaction banking universe.

Payments systems are crucial to the smooth running of the global economy. Module 2 describes the role that both low value and large/high value payments systems play in the global economy. There is a particular focus on large value payments, which are the mainstay of transaction banks. Key regulatory developments in the area of payments processing as well as the role of payments messaging and mobile banking/payments are also examined. In addition, the module explores the practical aspects of payments processing, including electronic funds transfer (EFT), bulk payments, check processing, payment cards, and merchant services.


On completion of this course, you will be able to:
- Describe the importance of transaction banking to the modern economy
- Outline the different services provided by transaction banks
- Discuss the impact of technological and regulatory changes on the transaction banking business
- Differentiate between the different systems used to handle low and large/high value payments and the risks involved
- Describe the various types of payment instrument that transaction banks must process

Content Highlight

Module 1: Transaction Banking - An Introduction
Topic 1: Overview of Transaction Banking
Topic 2: Transaction Banking Services
Topic 3: Business & Regulatory Issues

Module 2: Transaction Banking - Payments Services
Topic 1: Payments Systems
Topic 2: Payments in Practice

Administrative Details

Relevant Subject
SFC:2.00, PWMA:2.00
All Member: HKD570
Non-Member: HKD840
Staff of Corporate Member: HKD570