A brief presentation on Retail Banking.

1. RETAIL
BANKING
BY-
SYEDIMBESATZEYA

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. 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

4. 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).

5. 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.

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

7. 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).

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

9. 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

10. Conclusion