Retail Banking Products, Types and Features
Retail banking, also known as consumer banking or private banking, is the provision of banking services to the public by companies, associations or other banks.
Priyanka Dahima31 May, 2024
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Retail Banking Products: Retail banking is a service provided by a financial institution to its customers who are not financial institutions. Businesses, entrepreneurs, companies or other banks are not part of retail banking. Let us take a closer look at retail banking and Retail Banking Products, what it is, how it works, what it means and what services it offers.
Retail Banking Products
Retail banking, commonly known as consumer banking or private banking, is a financial service offered to individuals rather than businesses. Private customers can use the retail banking service to manage their finances, get a loan and keep money safely. Retail banks offer services such as checking and savings accounts, mortgages, personal loans, credit cards, and certificates of deposit (CDs).- Retail banking serves individual consumers instead of large institutions.
- Savings and bank accounts, mortgages, personal loans, debit or credit cards, certificates of deposit (CDs) and other services are available.
- Local community banks or branches of large commercial banks may be retail banks.
- Many fintech companies can now offer all the same services as retail banks through online platforms and smart apps.
- Retail banking services are available to the general public, but commercial banking services are available only to small and large businesses and trade associations.
Retail Banking Products Features
Retail banking includes a wide range of financial services and products tailored to meet the needs of individual customers. The important things about retail banking are: 1. Services to consumers: Retail banking is banking that focuses on providing financial services directly to people rather than to businesses or institutions. People may use the Services for their personal business needs. 2. Basic Banking Products: Retail banks offer many basic banking products, including savings accounts, checking accounts, certificates of deposit (CDs), and individual retirement accounts (IRAs). These are the basic elements on which retail banking services are built. 3. Consumer Loans: Home loans (home loans), car loans, personal loans and student loans are some of the consumer loans offered by retail banks. People can use these loans for things like homes, cars, schools and other personal expenses, as they are tailored to specific needs. 4. Credit Cards: Credit cards allow people to buy things using a credit card and are issued by retail banks. Credit cards often have rewards programs, cashback options, and other benefits that make it easier for people to pay and complete transactions. 5. Debit Cards: retail bank debit cards are linked to customers' current accounts. People using debit cards can buy them, make purchases and withdraw cash from ATMs. The money is taken directly from the cardholder's account. 6. Internet Banking: As a result of digitization, many people today use Internet banking. Customers can manage their accounts, pay bills, transfer funds and more remotely using online banking web platforms and mobile apps. 7. ATMs: ATMs or teller machines are an important part of retail banking. Outside of normal banking hours, customers can use ATMs to withdraw cash, deposit checks, transfer funds and perform other basic banking operations.Types of Retail Banks
There are 3 types of Retail Banks in Indian Banking System, these are Commercial Banks, Credit Union and Savings and Loan Associations. 1. Commercial Banks: People, companies and even celebrities can use commercial banks for various banking needs. On the other hand, commercial banks are considered retail banks because they offer the same services to their individual users. 2. Credit Union: Compared to corporate banks, credit unions are smaller and do not make money. People who own shares in a company pool their money to run it and provide services to its users. You can borrow and use your savings and other services such as credit and debit cards. 3. Savings and Loan Associations: Savings and loan associations differ from commercial banks and credit unions in that they deal with mortgages. Its main activity is mortgage loans for apartments and other real estate, but it is also involved in banking for ordinary customers.Importance of Retail Banking Products
Retail banking is important because it is an important part of the financial system that helps people and grows the economy. These are some of the main reasons why retail banking is important: 1. Financial Inclusion: Retail banking is very important for financial inclusion because it gives access to various banking services to many people. It ensures that everyone, regardless of how much money they earn, has access to basic financial goods such as loans, savings accounts and payment services. 2. Customer Relationship: Retail banks build and maintain close relationships with individual customers. This one-to-one method helps you find out what the customer wants, needs and wants to achieve financially. Personalization of goods and services builds trust and loyalty, leading to long-term customer relationships. 3. Economic growth: Retail banking helps the economy grow by making it easier for people to spend money, do business and start their own businesses. People can make large purchases, start businesses or invest in education through personal loans, mortgages and credit cards. This will help the economy grow in the long run. 4. Payment services: Retail banks are an important part of the payment system because they provide services such as accounts, debit cards and online banking services. This infrastructure ensures smooth business in the economy, helping people and businesses with their daily financial tasks. 5. Accumulation of Wealth: Individuals can accumulate wealth over time through retail banking. Savings accounts, fixed deposits and investment products help customers get rich, plan for the future and get their finances in order. 6. Risk Reduction: Retail bank insurance products help people manage financial risks. These services, such as life, health and property insurance, act as a safety net and keep people and their families safe when something bad happens. 7. Housing Finance: Commercial bank mortgage services are a big part of making housing possible. Banks help people achieve their goal of owning a home by lending them a loan for it. It promotes stability and wealth. 8. Education Financing: Student loans and education savings accounts are two ways retail banking can help pay for school. It allows people to invest in their education, which helps them grow as people and creates a skilled and educated workforce.
Retail Banking Products FAQs
Q1. What is Retail Banking Products?
Ans. Retail banking, also known as consumer banking or private banking, is the provision of banking services to the public by companies, associations or other banks.
Q2. What are the types of Retail Banks?
Ans. There are 3 types of Retail Banks in Indian Banking System, these are Commercial Banks, Credit Union and Savings and Loan Associations.
Q3. What are the services that Retail Banking Products offer?
Ans. The Retail Banking Products offer many services to each customer, such as savings and current accounts, personal loans, mortgages, credit cards and various investment and insurance products..
Q4. What type role do Retail Banking play in Wealth Management?
Ans. Retail banks offer a variety of wealth management services such as savings accounts, investment products and help with retirement planning. They help people achieve their financial goals by helping them build wealth and manage it well.
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