On general terms retail banking refers to typical mass-market banking in which individual customers use local branches of larger commercial banks. Retail banking aims to be the sole destinations where an individual finds as many as financial services possible catered to meet his needs.
As of late Retail Banks has also gone ahead and stepped into wealth management services, brokerage accounts, private banking and retirement planning. One of the most prominent features of modern day is retail banking is the facilities that it has provided to its consumers. Right from ATM's to credit cards to debit cards to phone banking and online banking retail banking has provided it's consumers with the most convenient banking facilities.
While some of these services are outsourced to ensure financial regulations, they often intertwine with core retail banking accounts like checking and savings to allow for easier transfers and maintenance. The core idea is that a consumer can avail banking services without paying any branch a visit for the same. In most cases it provides single window service which means that customers can visit one counter for any banking need.
One the most critical factors that determines the success of Retail Banking is flexibility in its branch organization. Regional differences could be taken into consideration, but they must co-ordinate with each other to ensure that every need of the consumer is met. The most prominent product sought after in Retail Banking is personal loans.
These loans are launched by financial houses under different yet attractive brand names to attract customers. The tenure granted for repayments usually lasts from 5-7 years with housing loans being provided for a longer duration: i.e of 15 years. In recent past retail lending has been a key profit maker for numerous banks. The new age private banking sectors have highly benefited through this aspect of retail lending, but in the longer run it has been the public sector banks who have profited the most, thanks to their vast branch network and out reach.
The last decade has witnessed the emergence of Retail Banking in the global front. Establishing good customer relationship strengthens your financial base as with every major deal that you incorporate via your customers adds to your treasury.
As of now the Retail section is undergoing a strain courtesy the recession. The failure to repay debts has seen the fall of global financial houses. So it is very important that a thorough examination is done to ensure know your customer (KYC) norms prior to issuing major loans. Customers on their behalf need to be very cautious and pay close attention to all aspects of their account. Reviewing your bank statements on a regular basis and ensuring that you aren't paying extra charges is a good way to keep your accounts safe and secure.