21.3. Banking & Finance Domain

Try these first

1. 1.

   Define KYC.

   Hint

   Think about why banks need to know who their customers are.

2. 2.

   What does NPA stand for?

   Hint

   Consider what happens when a loan isn't paid back.

3. 3.

   What does KYC stand for?

   • Know Your Customer
   • Keep Your Credit
   • Know Your Costs

   Hint

   It has to do with verifying identities.

4. 4.

   True or False: An NPA is a loan that is being completely repaid.

   • True
   • False

   Hint

   Think about the consequences of defaults in loans.

5. 5.

   Consider a bank with a Loan Approval Rate of 85% but an NPA Ratio of 10%. Discuss the financial implications.

   Hint

   Think about how these two metrics interact.

6. 6.

   If a bank's Customer Acquisition Cost rises due to inefficient KYC processes, how might this affect their overall business strategy?

   Hint

   Consider the balance between cost and growth in banking.