Get a clear understanding of the retail banking meaning including the various functions and sub types of these banks today.
The Meaning of Retail Banking
This is the kind of baking in which the bank usually executes almost all the transactions directly along with the consumers. These bank provide major financial services including credit cards, debit cards, personal loans, mortgages and savings. This therefore, is the term that is usually used for differentiating the banking services from the others like wholesale banking, commercial banking and investment banking.
There are cases that this would even refer to such kind of division of banking that deals with the retail customers and consequently can even be termed as personal banking. Read about the functions and sub types of these operations.
Functions of Retail Banks
Retail banks provide various products to customers including checking accounts, current accounts, atm cards, credit cards, savings and certificates of deposit. Additionally, they approve personal credit, home equity loans, mortgages and other banking services. A commercial bank also provide consumer banking services such as savings accounts to individual customers. These kinds of services help individuals in need of managing their financial matters. The retail bank is in the forefront for providing such kinds of solutions to the individual. There are chances for individuals to get really good results through that. These banks operate in many cities and districts. Many consider them the people’s banks as there is usually easy access to their services in many communities.
What is Retail Banking – Sub Types
The community development banks provide various credits and also services to the undeserved populations or markets. These are the kinds of banks that support the development of communities. Private banks are these that are meant for managing the assets of the individuals with highest worth. Offshore banks operate in such areas with low regulation and also taxation. Many of the offshore banks are usually the private banks.