Retail banking provides basic banking services like checking and savings accounts, CDs, mortgages, and loans directly to consumers rather than large corporations. Today, retail banking is characterized by offering multiple products through multiple channels to serve various customer groups. While retail banking deals with individual customers through branches, corporate banking serves business clients and investment banking handles complex financial deals between large entities.

1. Retail Banking System

2. What is retail bank?
• Retail banking is when a bank executes transactions
directly with consumers, rather than corporations or
other banks.
• A retail bank is a bank that works with consumers,
otherwise known as 'retail customers'.

3. Introduction
• One-stop shop Financial Services
• On behalf of Retail Clients
• Create Strong linkages

4. Cont.
Retail banks provide basic banking services
to the general public, including:
• Checking and savings accounts
• CDs
• Safe deposit boxes
• Mortgages and second mortgages
• Auto loans

5. Retail banking characteristics
Today’s retail banking sector is characterized by three
basic characteristics:
• Multiple products(deposits, credit cards, insurance,
investments and securities)
• Multiple channels of distribution(call center, branch,
internet)
• Multiple customer groups (consumer, small business,
and corporate).

6. Retail Banking Vs. Corporate
Banking
Retail banking
• Bank that deals directly with retail customers.
• Also known as consumer banking or personal banking,
• Retail banking is the visible banking to the general public
• Bank branches located in abundance in most major cities.
Corporate banking
• Known as business banking, refers to the aspect of
banking that deals with corporate customers.
• The term was originally used in the U.S. to distinguish it
from investment banking
• Corporate banking is a key profit center for most banks.

7. Retail Banking Vs Investment Banking
• Typically assist corporations and governments in raising capital by
underwriting and acting as the agent in the issuance of securities.
• Assist companies involved in mergers and acquisitions, derivatives
etc.
• Provide ancillary services such as market making and the trading of
derivatives, fixed income instruments, foreign exchange,
commodities and equity securities.
• Investment banks’ dealings are with other companies’ and
governments’ banks, retail banks deal directly with customers.
Investment banks specialize in complex deals. No customer has a
current account or cheque book. Retail banking customers, on the
other hand, have current accounts, cheque books and account (debit)
cards.

8. Retail Banking VS Commercial
Banking
• Retail bank does transactions directly with
consumers. Commercial banking is primarily
concerned with receiving deposits and
lending to businesses, whereas retail banking
provides the same products (such as deposits or
loans) just to individuals.
• The commercial bank business model is
typically based on relationship management
and sector specialization.

9. Products and Services of Retail Banking
Products Services
 Checking and savings
accounts
 Certificates of Deposit
 Guaranteed Investment
Certificates
 Mortgages
 Automobile
 Credit cards
 Lines of credit
 Stock brokerage (discount
and full-service)
 Insurance
 Wealth management
 Private banking

10. The Business of Retail Banking
• Act as payment agents
• Conducting current accounts for customers,
• Paying cheques
• Collecting cheques
• Enable customer payments via EFTPOS
(electronic fund transfer at point of sale), and
ATM (automated teller machine).

11. Advantage to Customers
• Anywhere anytime banking.
• Improved product offering.
• Faster and accurate service.
• Customer specific products.
• Branch customer to bank customer.
• Relationship banking.

12. Advantage to Banks
• Retail deposit are stable and constitute the
core deposit
• They are interest-insensitive and less
bargaining
• They constitute the low cost fund
• Retail customers bring other business to the
banks

13. Advantages(cont.)
• Better yield-better bottom line.
• Deployment of fund-easy and safe.
• Helps the economy in productive activity.
• Boost innovative credit.
• Diversified portfolio.
• Avenues for non-fund business.

14. Conclusion