Define retail banking and corporate banking?

Answer 1

Retail banking is one which provides banking or financial services directly to consumers, rather than corporations or other banks. In other words, Retail Banking focuses on catering banking needs of individual customers in an integrated manner. Retail banking services include installment loans, residential mortgages, equity credit loans, deposit services, and individual retirement accounts. Retail banking is a high volume business with many service providers competing for market share. Some retail banking services, for example, credit cards, are among the most profitable services offered by financial institutions.

In contrast with this, wholesale-bankingor corporate banking focuses more on corporate-style entities and high-value transactions, providing a broad range of services to large corporations, mid-sized companies and small businesses. Often, a financial institution will provide these services at discounted rates based on the number of services at a package. This approach makes it more attractive for a company to place all financial matters with a single institution rather than using different banks and agencies for each banking service that the business needs to function. The advantage of wholesale banking is the easy access to the total financial portfolio, which makes transfers between accounts much simpler. Wholesale banking also includes features that allow for efficient transfers of funds and other financial instruments between financial institutions.

Commercial banking is normal banking business done for profit considerations. Corporate banking is financing corporates. M.J. SUBRAMANYAM, BANGALORE

Answer 2

Retail customers are generally the walking individual people. The public.

Commercial or corporate banking is generally banking to companies, helping with Accounts Payable, receivables, credit cards, loans, etc.

So, a retail bank is one with an ATM, corporate banking not so much.