Deutsche Bank is a global universal bank. What are the advantages and Essay

Deutsche Bank is a global universal bank. What are the advantages and disadvantages of a global universal bank and what are som - Essay Example The Deutsche bank holds a record for being the only bank that has strived to achieve omnipresence. Evidently, universal banks exhibit multiple benefits to the clients, but a closer analysis reveals that they have certain disadvantages. This paper will highlight the advantages and disadvantages of universal banks. Moreover, the paper will analyse the issues that arise when handling tasks in the compliance department. Advantages of Universal Banks Universal banks offer their clients a diverse range of services to different clients having the opportunity to receive personalized services that conform to their banking needs. Usually individuals, groups, organizations, states and multi-national organizations exhibit varying financial needs. The fact that universal banks have the capacity to offer tailor-made services, they surpass other banks by offering each client service that conforms to personal financial needs. This is the reason why universal banks offer a high level of convenience t o the clients (Heller, Meaney & Murphy 2001, p. 78). They serve as a single-stop banks where one can access all the required financial needs. Evidently, such convenience receives emphasis from the presence of most universal banks in different regions, affording the clients an increased banking flexibility even beyond the borders. Recent research reveals that universal banks serve as critical contributors to the economy. This is because they have the capacity to support a diverse range of investments in different parts of the globe. Universal banks exert their effect on the entire economic system, altering the economic trends by providing financial breakthroughtwo different types of clients. Universal banks serve private household clients, offering arrange of appealing service packages appropriate for them (Palepu2007, p. 87). Moreover, universal banks offer a range of services to institutional clients empowering them to receive the required the financial boost to achieve their goals . This factor has served as a reliable solution to the financial problems of many institutions as they can form investment partnerships with universal banks. These services are offered at a relatively lowered funding cost compared to other banks. Evidently, universal banks register a low level of profiling costs, placing them in a better position to offer services at the lower funding cost compared to other banks. Moreover, these banks exhibit a lower funding cost themselves, explaining further why they favour all types of clients. Universal banks have served to increase the willingness of credit borrowers, a factor that has contributed to the rising returns for clients who wish to save. This has been especially advantageous to governments that exhibit financial needs that require borrowing. Moreover, this proves to be highly beneficial to other clients, and contributes to a surging growth. This has given rise to an evident rise instability of the economies by causing as the spread of innovations in different regions in the globe (PadoanBrenton & Boyd 2003, p. 34). Disadvantages Although universal banks exhibit all these benefits, they face a surging pressure to satisfy all the clients in different regions.These banks face the compulsion of maintaining a high quality of their services (Lambert&Ioma2005, p.98). They have to ensure that they are responsive; clear in communication, prompt, and a high level of integrity in offering