Retail Internet Banking | Internet Banking (2024)

FAQs

What is retail internet banking? ›

Introduction to Retail Banking

The banking that takes place between your personal bank and you is nothing but retail banking. All the banking services that you enjoy from your bank including your personal accounts, saving accounts, loans and even online banking services fall under retail banking.

Retail banking is the part of a bank that deals directly with individual, non-business customers. This operation brings in customer deposits that largely enable banks to make loans to their retail and business customers. Corporate, or business, banking deals with corporate and other business customers of varying sizes.

Retail banking, also known as consumer banking or personal banking, is banking that provides financial services to individual consumers rather than businesses. Retail banking is a way for individual consumers to manage their money, have access to credit, and deposit their funds in a secure manner.

Customers can visit the branch to manage their accounts, apply for loans, make deposits, and withdraw cash. On the other hand, retail banking is more focused on providing basic banking services, such as savings accounts, checking accounts, ATM services, and credit cards. 2.

The lack of overhead gives internet banks advantages over traditional banks, including fewer or lower fees and accounts with higher APYs. Internet banks lack personal relationships, no proprietary ATMs, and more limited services.

A retail banker is a professional who works at a financial institution, such as a bank, providing many individuals with core financial solutions. Retail bankers are responsible for managing customer accounts, offering banking products and services, and advising clients on ways to achieve their financial goals.

Key takeaways

Brick-and-mortar banks offer face-to-face customer service. Online-only banks, also known as direct banks, don't operate their own branch locations – limiting customer service to phone calls and online chats. Online banks offer higher interest rates on savings products and lower interest rates on loans.

Retail banking primarily serves individual customers, offering a range of personalized banking products and services. Corporate banking, on the other hand, focuses on providing comprehensive financial solutions to businesses, institutions, and large corporations.

Wholesale banking refers to banking services sold to large clients, such as other banks, other financial institutions, government agencies, large corporations, and real estate developers. It is the opposite of retail banking, which focuses on individual clients and small businesses.

Retail banks cater to individual customers, providing basic financial services and prioritising personalised customer service. On the other hand, corporate banks focus on businesses, institutions, and government entities, delivering specialised financial solutions to meet their complex needs.

Is retail banking the same as commercial banking? ›

The key difference between retail and commercial banking is who the products are designed for. While retail banks service individuals, communities, small businesses, and families, commercial banks focus on larger companies, government entities, and institutions.

'The biggest difference between private banking and retail banking is the personalised service and sophisticated financial solutions offered. Private banks provide access to exclusive investment opportunities, such as private equity, venture capital, and hedge funds, which retail banks typically do not offer.

E-retail, also known as e-tail, internet retail or online retail, stands for electronic retail. In e-retail, a business or individual sells retail products and services through online stores. An e-retail company can be a purely digital presence, meaning there is no physical store for a customer to enter.

Banking in retail refers to a task performed as part of the store opening process in the morning, where sales from previous day are reconciled, and the cash proceeds from those sales are deposited at the bank.