Retail banking
Banking services for the general public, not corporations.
Retail banking, also known as consumer banking or personal banking, is the provision of services by a bank to the general public, rather than to companies, corporations, or other banks. It is distinguished from wholesale banking (corporate banking), investment banking, and commercial banking. Retail banking services include savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards, and may refer to a division or department of a bank that deals with individual customers.
- field
- Banking
- known_for
- Providing banking services to the general public
- also_known_as
- Consumer banking, personal banking
- distinguished_from
- Wholesale banking, investment banking, commercial banking
- typical_products
- Savings accounts, transactional accounts, mortgages, personal loans, debit cards, credit cards
Lore & Background
Retail banking serves individual customers, offering products such as checking accounts, savings accounts, debit cards, credit cards, mortgages, and personal loans. In some countries like the U.S., specialized accounts like sweep accounts, money market accounts, and Individual Retirement Accounts (IRAs) are also included. The term commercial bank in the U.S. is used for a normal bank to distinguish it from an investment bank, a distinction reinforced by the Glass–Steagall Act after the Great Depression and later repealed in the 1990s.
Reader's Guide
Retail banking is significant as the primary interface between banks and the general public, enabling everyday financial transactions, savings, and credit for individuals. Its distinction from wholesale and investment banking shapes regulatory frameworks and market structures. The historical separation in the U.S. between commercial and investment banking, enforced by the Glass–Steagall Act and later repealed, highlights the evolving boundaries of retail banking. Sub-types such as community development banks, private banks, offshore banks, savings banks, and postal savings banks further illustrate the diversity within retail banking, each serving specific populations or regulatory niches.
Did You Know?
- Retail banking is also known as consumer banking or personal banking.
- It is distinguished from wholesale banking, which serves companies, corporations, or other banks.
- In the U.S., the term commercial bank is used for a normal bank to distinguish it from an investment bank.
- Sub-types of retail banks include community development banks, private banks, offshore banks, savings banks, and postal savings banks.
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