Retail Banking vs Corporate Banking Services
Corporate banking, also called business banking, refers to bank dealings only with corporate customers. Corporate banking services are key profit center for banks. However, as one of the biggest divisions of customer loans, it is called the source of regular write-downs for soured loans.
On the other hand, retail banking, also called consumer banking, refers to banking dealing directly with retail customers. In fact, retail banking is the face of baking in general, having branches all over the country, including major cities and urban areas.
Banks focusing purely on retail clientele are relatively fewer; most retail banks have separate divisions of banks.
Corporate Banking Services and Products
Corporate banking solutions offer services to diverse range of clients, including small to medium-sized local businesses with merely a few millions in revenue to big conglomerates dealing in billions. Commercial banks offer some of the following products and services:
- Credit Products and Loans
- Cash Management and Treasury Services
- Equipment Lending
- Commercial Real Estate
- Trade Finance – Letter of credit, factoring and bill collection
- Employer Services – Payroll, Group retirement plans
Corporate banking solutions also include securities underwriters and asset management.
Retail Banking Services and Products
- Savings Accounts and Checking Accounts
- Certificate of Deposit
- Investment Properties and Mortgage on Residential Property
- Automobile Financing
- Credit Cards
- Lines of Credit, Personal Credit Products
- Foreign Currency, Remittance Services
Retail banking also offers the following services through separate divisions or affiliate banks:
- Stock Brokerage
- Insurance
- Private Banking
- Wealth Management
How Retail and Corporate Banking Solutions affect the Economy?
Retail and corporate banking services are critically important for the domestic as well as global economy. While retail banking brings customer deposits and enables banks to offer loans to their retail customers, corporate banking services make loans enabling businesses to grow as well as hire people. In a way, corporate banking solutions expand the economy of a country.
Both retail and corporate banking services are quintessential for smooth economy functions of a country. Large banks mostly have specialised divisions dealing in retain banking as well as corporate banking solutions. Both these types of banking are amongst the largest profit-making centres for banks.