Retail banking, also known as consumer banking, refers to the services provided by banks to individual customers. These services include checking and savings accounts, loans, mortgages, credit cards, and other financial products and services.
Retail Banking Services:
Checking and Savings Accounts:
The most basic service offered by retail banks is checking and savings accounts. Retail banks serve individuals and families. They design checking accounts for daily transactions, such as paying bills and making purchases. These accounts enable individuals to deposit and withdraw money easily. Retail banks also offer savings accounts for longer-term savings. Individuals can earn interest on their deposits with these accounts.
Retail banks also offer a variety of loan options to help individuals and families achieve their financial goals. These may include personal loans, auto loans, home improvement loans, and student loans. Banks will typically review the borrower’s credit history . Income to determine whether they are eligible for a loan, and what interest rate they will be charged.
Lenders design mortgages specifically for homebuyers. Banks offer a range of mortgage products, including fixed-rate mortgages, adjustable-rate mortgages, and government-backed mortgages. These products allow borrowers to finance the purchase of a home, and pay back the loan over a period of years.
Credit cards are a popular financial product offered by retail banks. These cards allow consumers to make purchases on credit, and pay back the balance over time. Credit cards often come with rewards programs, such as cash back or points that can be redeemed for travel or other perks.
Other Financial Products and Services
In addition to the above services, retail banks may also offer a variety of other financial products and services, such as investment accounts, insurance products, and retirement planning services. The companies design these products and services to help individuals and families manage their finances over the long-term and prepare for future expenses and retirement.