Who is retail user

Retail Banking is a banking service provided to the general public or individual to regulate their funds in their saving account or fixed account and to perform various other day-to-day banking transactions like depositing money and opening bank account. Corporate banking is a type of commercial banking that focuses on small and large businesses and corporations, offering services such as trade finance, derivatives, and other financial products.

Personal loans, vehicle loans, home loans, and other customer-oriented retail banking products are available. Corporate banking is focused on the needs of businesses and can be adapted or adapted to meet specific needs, such as loan facilities. When it comes to customer base, retail banking often attracts a huge number of customers, but corporate banking does not attract a significant number of customers but does attract affluent clients.

The processing cost in retail banking is low, whereas the processing cost in corporate banking is substantial. Corporate banking is more profitable than the retail banking segment of the banks in terms of profitability.

Retail and corporate financial institutions are inextricably interconnected because of who they serve. Businesses and customers rely on one another to thrive, which means that retail banks and corporate banks, in theory, rely on one another to function properly. For Quick Alerts. Subscribe Now. For Daily Alerts. Banking 2. For investment related articles, business news and mutual fund advise. Allow Notifications. Retail banking has a threefold purview — money management, deposit, and credit.

Hence, it helps the customers to save and invest their money, manage funds and have access to credit. It provides customised financial services and banking solutions to corporate clients, to help them run smoothly and efficiently. Banks often hire relationship managers to maximize their business by building a client relationship. The difference between retail and corporate banking can be drawn clearly on the following grounds:. Retail banking is mass-market banking, with a large number of customers and high volume transactions.

On the contrary, corporate banking, as the name itself, indicates is the services offered by the banks to the corporate houses, to help them in growing their businesses and running efficiently. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Key Differences Between Retail and Corporate Banking The difference between retail and corporate banking can be drawn clearly on the following grounds: Retail Banking is a business model which the banks implement with the aim of acquiring maximum customer base, by offering various products and services to the individuals, and small business enterprises.

Conversely, Corporate banking is another business model adopted by the banking companies so as to earn maximum revenue, by offering products and services to the business enterprises and government agencies. Retail Banking and Corporate Banking both are the system of the banking service but are differentiated according to their customer base, i. However, the purpose of both banking system is the same, i. Retail banking is nothing but a day-to-day banking service used by an individual, and the services offered under retail banking are opening deposit accounts, providing personal loans as well as providing debit and credit card to the desired clients.

In contrast, Corporate banking involves only those services which are provided to the corporate bodies and not to the individual persons such as cash management facilities, asset management facilities and other commercial banking activities, etc. Particulars Retail Banking Corporate Banking Definition Retail Banking is a banking service provided to the general public or individual to regulate their funds in saving account or fixed account and to perform various other day-to-day banking transactions like depositing money and opening bank account.

Corporate banking is a commercial banking facility which only deals with small or large companies and corporate bodies and provides services to them such as trade finance, derivate, etc.

Products Orientation Products of retail banking are customer-oriented. Products of corporate banking is business-oriented. Clientele or Customer's Range Retail banking has a large clientele portfolio. Corporate banking has a small clientele portfolio. Handling Charges In retail banking handling charges are low. In a corporate banking handling charges are relatively higher than retail banking.

Transaction Value Financial worth of transactions is generally low to medium. Financial worth of transactions are comparably higher than retail banking. Source of profit Margin of interest amidst borrowers and lenders is the main source of profit. Interest and fees charged on the services provided is the main source of profit. Customer Relations Moderate relationship amidst customer and bank. High-level relationship amidst customer and bank.