There are several types of bank accounts present in the market. Based on personal or organisational banking needs, these services differ. Retail banking is aimed at people who use banking services for personal use. The bank branches are situated across the city as they deal with consumers frequently. Respectively, as the name suggests, corporate banking helps organisations grow capital by offering credit and guidance wherever required. Corporate banking offers corporate firms credit facilities curated for their needs and requirements.
Banks take up many roles and offer a lot of interesting services like retail & corporate banking and wealth and credit management. There are also services like merchant banking and investment banking to help you invest fruitfully. This goes beyond the bank’s offerings like a savings account and a current account.
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Retail banking is nothing but a service offered to the general audience. Personal banking, also known as consumer banking, offers an opportunity for the public to better care for their wealth by providing them with basic banking services.
Credit and financial guidance are also available. If you have a financial goal in mind that you want to achieve in a set amount of time, then you will find a kiosk at a bank branch where they will draw a roadmap for you to achieve your goals. The most basic services and facilities offered by banks to their audience.
The primary goal of corporate banking is to assist businesses and organisations in their journey of wealth creation. Here are some of the most significant services offered by the corporate section – credit services, treasury services, and commercial services.
You can look at corporate banking as a more advanced type of commercial bank. It is also known as business banking, serves a range of clients from small to mid-sized businesses. Even the current accounts fall under corporate banking.
The Significant Differences Between Retail and Corporate Banking
Retail banking is nothing but a kind of banking service that offers the general audience an opportunity to better manage their wealth in savings or fixed deposits. It also helps people make basic transactions like depositing cash, creating a bank account, etc.
Corporate banking is a small set of commercial banking that pays attention to small and big corporations and offers them services like trade financing, derivatives, and other instruments of finance. Automobile and personal loans, along with home loans, are also offered in corporate banking. As the name suggests, It is based on the requirements of companies and organisations by offering them services like lending.
If you compare retail and corporate banking, then the customer base of retail banking is more as not everyone is into business and owns an organisation. It comes with low processing costs as well. Obviously, when it comes to profitability, corporate banking takes the lead over retail. Now you are aware of the difference between retail and corporate banking.
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