Retail Banking
Retail banking refers to the banking services that are provided to individual consumers and small businesses. It includes a wide range of financial products and services such as Savings Accounts, Checking accounts, personal loans, mortgages, Credit cards, and certificates of deposit. Retail banks focus on serving the general public rather than large businesses or Corporations.
Common examples of retail banking services include:
- Savings Accounts: Accounts that earn interest and are used for personal savings.
- Checking Accounts: Accounts that allow for daily transactions, including deposits and withdrawals.
- Personal Loans: Unsecured loans for personal use, such as Debt Consolidation or financing major purchases.
- Mortgages: Loans specifically for purchasing real estate.
- Credit Cards: Credit/">Revolving Credit accounts that allow consumers to make purchases up to a certain limit.
A case illustrating retail banking is the experience of a first-time homebuyer who applies for a mortgage through a local bank. The bank evaluates the buyer’s Creditworthiness, offers various mortgage Options, and assists throughout the closing process. Another example is a customer using a mobile banking app to manage their Checking account, pay bills, and transfer Money to friends.