Definition of Associate bank:
Bank that is affiliated with another entity to provide common benefits for its clients. For example, TD Ameritrade works together with TD Bank to provide banking and investment solutions for its clients.
An associate bank is a bank that is affiliated, usually through membership, in a regional or national organization such as a clearing house, an electronic payments network, or a bank card network, such as Visa or MasterCard. There are usually different classes of membership in regional and national associations, which correlate with shares owned or fees paid.
The term "associate bank" is also used to describe banks that accommodate each other's customers across geographic or national lines when each bank's geographic reach is limited. For example, a small state bank in the United States may have an associate relationship with a bank in London, in order to accommodate a customer traveling there.
How to use Associate bank in a sentence?
- Many banks who issue branded credit cards become associate banks in clearing networks that process and settle all payments.
- Regional banks may also form alliances with larger banks to facilitate services in a similar type of association.
- An associate bank is a bank that is affiliated with a payments network, such as a credit card or automated clearing house, for the purpose of more efficient customer transactions.
Meaning of Associate bank & Associate bank Definition