Retail banking: Difference between revisions
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{{Short description|Offering of services by a financial institution to the general public}} |
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'''Retail banking''' refers to banking in which banks undergo transactions directly with consumers, rather than corporations or other banks. Services offered include: [[savings account|savings]] and [[checking account]]s, [[mortgage]]s, [[personal loan]]s, [[debit card]]s, [[credit card]]s, and so forth. |
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{{No footnotes|date=July 2023}} |
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{{Banking |banks}} |
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[[File:Bank account (UML class diagram).svg|thumb|UML class diagram depicting retail banking]] |
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'''Retail banking''', also known as '''consumer banking''' or '''personal banking''', is the provision of services by a [[bank]] to the [[general public]], rather than to companies, corporations or other banks, which are often described as [[wholesale banking]] (corporate banking). |
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Banking services which are regarded as retail include provision of [[savings account|savings]] and [[transactional account]]s, [[Mortgage loan|mortgages]], [[personal loan]]s, [[debit card]]s, and [[credit card]]s. Retail banking is also distinguished from [[investment banking]] or [[commercial banking]]. It may also refer to a division or department of a bank which deals with individual customers.<ref>{{Cite web |last=Reed |first=Eric |date=2023-03-30 |title=Retail Banking vs. Commercial Banking |url=https://www.thestreet.com/markets/retail-banking-vs-commercial-banking-15109546 |access-date=2024-02-05 |website=TheStreet |language=en-us}}</ref> |
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==Types of banking== |
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*[[Commercial bank]] has two meanings: |
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In the U.S., the term ''[[commercial bank]]'' is used for a ''normal'' bank to distinguish it from an [[investment banking|investment bank]]. After the [[Great Depression]], the [[Glass–Steagall Act]] restricted normal banks to banking activities, and investment banks to [[capital market]] activities. That distinction was repealed in the 1990s. Commercial bank can also refer to a bank or a division of a bank that deals mostly with deposits and loans from corporations or large businesses, as opposed to individual members of the public (retail banking). |
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**Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to normal individual members of the public (retail banking). It is the most successful department of banking. |
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==Products== |
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[[File:Halifax bank, Commercial Street, Leeds (27th May 2010).jpg|thumb|right|A retail bank in [[Leeds]], [[United Kingdom]].]] |
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Typical banking services offered by retail banks include: |
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* [[Transactional account]]s |
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** [[Checking account]]s ([[American English]]) |
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** [[Current account (banking)|Current account]]s ([[British English]]) |
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* [[Savings account]]s |
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* [[Debit card]]s |
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* [[ATM card]]s |
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* [[Credit card]]s |
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* [[Traveler's cheque]]s |
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* [[Mortgage]]s |
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* [[Home equity loan]]s |
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* [[Personal loan]]s |
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* [[Certificate of deposit|Certificates of deposit]]/[[Term deposit]]s |
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In some countries, such as the U.S., retail bank services also include more specialised accounts, such as: |
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* [[Sweep account]]s |
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* [[Money market account]]s |
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* [[Individual Retirement Account]]s (IRA's) |
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==Sub-types of retail banks== |
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*[[Community development bank]] are regulated banks that provide financial services and credit to underserved markets or populations. |
*[[Community development bank]] are regulated banks that provide financial services and credit to underserved markets or populations. |
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*[[Private bank]]s manage the assets of high |
*[[Private banking|Private bank]]s manage the assets of [[high-net-worth individual]]s. |
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*[[Offshore bank]]s are banks located in jurisdictions with low taxation and regulation. Many offshore banks are essentially private banks. |
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*[[Savings bank]] accept [[savings]] deposits. |
*[[Savings bank]]s accept [[savings]] deposits. |
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*[[Postal savings system|Postal savings bank]]s are savings banks associated with national postal systems. |
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==See also== |
==See also== |
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{{Portal|Banks}} |
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*[[Bank]] |
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* |
* [[Banking institution]] |
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*[[Predictive analytics]] |
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== |
==References== |
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{{Reflist}} |
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{{refbegin}} |
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* Retail Banker International - newsletter for the retail banking industry: www.retailbankerinternational.com |
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{{refend}} |
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{{Authority control}} |
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{{finance-stub}} |
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{{DEFAULTSORT:Retail Banking}} |
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[[Category:Banking]] |
[[Category:Banking]] |
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[[Category:Scottish inventions]] |
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[[Category:Service retailing]] |
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[[fr:Banque de détail]] |
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[[zh:零售银行]] |
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Latest revision as of 19:33, 19 November 2024
 | This article includes a list of references, related reading, or external links, but its sources remain unclear because it lacks inline citations. (July 2023) |
| Part of a series on financial services |
| Banking |
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 |
.svg)
Retail banking, also known as consumer banking or personal banking, is the provision of services by a bank to the general public, rather than to companies, corporations or other banks, which are often described as wholesale banking (corporate banking).
Banking services which are regarded as retail include provision of savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards. Retail banking is also distinguished from investment banking or commercial banking. It may also refer to a division or department of a bank which deals with individual customers.[1]
In the U.S., the term commercial bank is used for a normal bank to distinguish it from an investment bank. After the Great Depression, the Glass–Steagall Act restricted normal banks to banking activities, and investment banks to capital market activities. That distinction was repealed in the 1990s. Commercial bank can also refer to a bank or a division of a bank that deals mostly with deposits and loans from corporations or large businesses, as opposed to individual members of the public (retail banking).
Products
[edit].jpg)
Typical banking services offered by retail banks include:
- Transactional accounts
- Savings accounts
- Debit cards
- ATM cards
- Credit cards
- Traveler's cheques
- Mortgages
- Home equity loans
- Personal loans
- Certificates of deposit/Term deposits
In some countries, such as the U.S., retail bank services also include more specialised accounts, such as:
Sub-types of retail banks
[edit]- Community development bank are regulated banks that provide financial services and credit to underserved markets or populations.
- Private banks manage the assets of high-net-worth individuals.
- Offshore banks are banks located in jurisdictions with low taxation and regulation. Many offshore banks are essentially private banks.
- Savings banks accept savings deposits.
- Postal savings banks are savings banks associated with national postal systems.
See also
[edit]
References
[edit]- ^ Reed, Eric (2023-03-30). "Retail Banking vs. Commercial Banking". TheStreet. Retrieved 2024-02-05.
- Tiwari, Rajnish and Buse, Stephan (2006): The German Banking Sector: Competition, Consolidation and Contentment, Hamburg University of Technology (TU Hamburg-Harburg)
- Brunner, A., Decressin, J. / Hardy, D. / Kudela, B. (2004): Germanys Three-Pillar Banking System – Cross-Country Perspectives in Europe, Occasional Paper, International Monetary Fund, Washington DC 2004.
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