- Retail banking is also known as the consumer banking. Retail banking is a type of banking which is framed especially for individual consumers.
- A retail bank which deals with individual customers by providing basic banking services like savings and transactional accounts, mortgages, loans, card payments etc.
1) Give Credit
2) Accept deposit
3) Money management
1) Give CreditBanks offer credit to their clients for purchasing it also includes mortgages and loans. By doing this banks will increase liquidity in the economy. this will lead to increase employment and create more opportunities.
2) Accept DepositBanks are a secure place for those who want to deposit their savings. Banks will give a higher rate of interest to savings accounts, certificates of deposits, and other financial products.
3) Money ManagementThe retail bank will help to manage money through accounts and cards. It will help to do transactions online at any place.
Types of Retail Banks
1) Community development bankA community bank is a commercial bank which provides financial services to low to moderate-income people.
2) Private BanksPrivate Banks are who provides financial services to the high net worth clients with high levels of income or assets. Private Banks will provide personal basis services.
3) Postal Saving BanksPostal saving banks provide services to those who don't have access to banks. Postal saving banks are safe and convenient to save money. Postal saving banks are specially designed for the poor section of society.
Types of Products
3) Debit CardA debit card is also known as the bank card or check card. It is a plastic card which is used instead of cash while making a purchase. One can only make payment if there is any surplus amount in the account.
4) Credit CardA credit card is a payment card which is issued to the account holders who pay for their goods and services. In credit, if there is no balance in the account then also an account holder can transact and pay money to the merchant. In credit card, an account holder will get a line of credit from the bank.
5) ATM CardAn ATM card is a card issued by the bank which enables a customer to access ATM to transact deposits, cash withdrawals, and obtaining account information.
6) LoansA loan is the lending of money from one organization, entity or an individual to another organization, entity or an individual. There are many types of loans like a secured loan, unsecured loan, demand loan, subsidized loan and concessional loan.
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