Introduction to Retail Banking
The banking that takes place between your personal bank and you is nothing but retail banking. All the banking services that you enjoy from your bank including your personal accounts, saving accounts, loans and even online banking services fall under retail banking.
Retail banking is the banking that is for the retail customers of the bank, which includes the general population and not large or multinational institutions. Even when you are availing banking services online, you are connecting with your bank on some level, making it a part of retail banking as well.
Retail banking helps you to meet your day to day needs by services like debit cards, credit cards, online withdrawals and deposits and many other benefits.
How does retail banking work?
Retail banks are for the general public to help them save and invest their money and handle their regular needs by providing various services like bank accounts, credit cards, debit cards, fixed deposits, loans, and many more.
Certain services like withdrawals and deposits can also be availed online as well as in the nearest branch of your bank. Online retail banking has made the transfer of money and retailing easier for the retail customers.
Some retail banks may or may not provide all the services you expect, so it will be good to check with the bank branch or visit the bank website if you want to avail a certain service from the retail bank.
Types of Retail Banks
Retail banks can be of three types— small banks, large banks and online banks.
Small banks-
These banks operate on a small scale with smaller deposits. Their share in the market is much lesser than the large banks. They operate in many locations and provide almost all services that can be provided by a large bank.
Large banks-
These are the famous banks that operate in large cities. As they have made a certain name for themselves, many retail customers opt for these banks.
Online banks-
These banks don’t have any physical branches and only operate online.
