Retail banking , also known as consumer banking , is the provision of services by banks to the general public, not to companies, companies or other banks, often described as wholesale banking. Retail banking services 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 the division or department of the bank that deals with individual customers.
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 requires ordinary banks to engage only in banking activities, while investment banks are limited to capital market activities. This distinction was lifted in the 1990s. Commercial banks may also refer to banks or bank divisions that are mostly associated with deposits and loans from large companies or businesses, as opposed to individual members of society (retail banking).
Video Retail banking
Products
Typical retail banking services offered by banks include:
- Transactional account
- Checking account (American English)
- Current account (English English)
- Savings Account
- Debit card
- An ATM card
- Credit card
- Travel checks
- Mortgage
- House equity loan
- Personal loans
- Certificate of Deposit/Time Deposit
In some countries, such as the US, retail bank services also include more dedicated accounts, such as:
- Swap Account
- Money market account
- Individual Retirement Accounts (IRA's)
Maps Retail banking
Retail bank sub-types
- Community development banks are regulated banks that provide financial and credit services to markets or underserved populations.
- Private banks manage high value individual assets.
- A foreign bank is a bank located in a jurisdiction with low taxes and regulations. Many overseas banks are basically private banks.
- The savings bank accepts savings deposits.
- The postal savings bank is a savings bank associated with the national postal system.
See also
- Banking institution
- Bank
References
Source of the article : Wikipedia
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