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How Does Corporate Banking Differ from Commercial Banking?

Posted on by Imarticus Learning

Corporate banking is one of the dominant sectors of the entire financial ecosystem, primarily for those big businesses and corporations that need customized financial services. Though most often confused with commercial banking, corporate banking is differentiated in several ways and attends to a niche market. For executives, in particular, who wish to transition to senior roles, it is important to understand this difference so that the proper business strategy can be evolved and implemented.

In this article, we’ll dive deeper into Corporate Banking, core functions, and how they are different from commercial banking. We will also highlight the reasons why understanding such services is valuable, especially to the executives looking to enrich their financial acumen. This guide is for those seeking knowledge on the differences between corporate and commercial banking and on financial services for large-scale organizations.

What is Corporate Banking?

Corporate banking, a segment of banking, encompasses financial services rendered by the bank to Corporates, Institutions and Government. It involves anything possible ranging from providing funds for growth enhancing projects, managing inflows and outflows of cash to advising on capital hierarchy through mergers and acquisitions.

Corporate banking services are heavily customized because the kind of financial needs is entirely unique to each client. Many big corporations handle complexity at huge volumes of transactions. These are given specialized support and services by corporate banking professionals.

The Indian economy is multi-faceted and the expansion of the corporation banking sector Is one of the major contributors. As a report published by KPMG states, the corporate banking industry accounts for approximately 70% of all the earnings being made in the banking industry. Thus, this shows how significant corporate banking is. Indian banks like ICICI, HDFC, and SBI have invested greatly on the corporate banking divisions to target this market.

Key Corporate Banking Services

Corporate Banking Services include the following broad offerings:

Loan Syndication: Collecting financial resources from multiple financiers in order to disburse a large loan towards a large project.

Cash Management: Overseeing the operation funds of an organization on a daily basis to assist the organization in overseeing its liquidity.

Treasury Services: Executing currency transactions, reducing exposure to risks, etc. so as to assist the organization in conducting its financial activities worldwide.

Capital Raising and Advisory: Assisting a corporation in experts research and analysis of capital debt or equity issuance, corporate finance and strategic management communications.

Thus, the scale and volume of these services make Corporate Banking Services riskier to manage and more complex to service than personal or small-business banking.

What is Commercial Banking?

Commercial Banking mostly caters to small-to-medium-sized businesses, also called SMEs alongside individual consumers. Under this category of banking, a wider array of services is offered at a lower scale than those that occur in corporate banking. It encompasses basic banking services like corporate loans, deposits, and withdrawal facilities, retail banking, etc. Services for business purposes availed by commercial banks are on a template and hence not so detailed and sophisticated as the ones offered by corporate banks.

Even the Reserve Bank of India has recently brought to notice the massive growth of commercial banks in the present-day era, attributable to innovations in digitization efforts which has greatly enhanced and expanded the commercial banks’ outreach to a huge number of small and medium enterprises all over the nation.

Differences Between Corporate and Commercial Banking

Corporate Banking and Commercial Banking have several functions in common, but they differ in scale, specialty, and client base. Here are some of the major distinctions between corporate and commercial banking:

Corporate Banking Commercial Banking
Caters to large corporations and government entities. Primarily serves SMEs and individual clients.
Customized financial services like loan syndication, capital raising, and risk management. Standardized offerings such as loans, deposits, and credit facilities.
Higher-value transactions and complex financial instruments. Lower transaction values with simpler financial products.
Services often include treasury and cash management for international transactions. Basic services with a local focus on domestic financial needs.
Relationship managers provide tailored strategies and solutions. Branch staff or automated services handle most operations.

Corporate Banking Trends

Corporate Banking is evolving. It is evolving due to technology, regulatory reforms, and clients’ expectations. Some of the notable trends include:

Digital Transformation: As a McKinsey report shows, 70% of corporate banks are making investment in digital tools so that client experience is streamlined. Indian banks are at the forefront of this shift, with the support of many kinds of fintech solutions in order to make strengthen the corporate banking services.

Focus on ESG (Environmental, Social, and Governance): ESG now is given utmost priority, and corporate banks are now assisting clients to harmonize operations along sustainable practices. Green financing, for instance, has now become an essential service offered by corporate banks.

Data Analytics and AI: The corporate banking sector will be enhanced by 30% growth in profits in the year 2025 thanks to advanced data analytics including AI. This is true for India where the banks have started implementing AI based risk management systems and client advisory as well.

The use of the digital tool and data analytics represents this industry-wide effort towards optimizing efficiency, mitigation of risk, and also rich client experience.

Looking Forward: The Future of Corporate and Commercial Banking in India

With the Indian economy growing, Corporate Banking and Commercial Banking are most likely to grow hand-in-hand. Corporate banking would evolve in the same way as commercial banking does, centered around the client’s needs. It will adapt as fintech evolves, resulting in more streamlined services for huge corporations.

The World Bank projects that India’s GDP will grow by 6.5% in the near future, and corporate banking services demand will surely be created when firms require funding to expand their operations. Against this background, the executive with an understanding of Corporate Banking Services and Differences Between Corporate and Commercial Banking will be in a better position to negotiate the complexities of finance.

Conclusion

For executives looking to move up to senior roles in Finance services, knowledge of the Corporate Banking product and, more importantly, its positioning relative to Commercial Banking becomes extremely valuable. 

Corporate Banking is as much part of the banking market today as it has ever been, offering complex services to large corporations, while Commercial Banking Overview serves a larger client list, primarily SMEs and individuals. For those who are seeking more structured learning paths, executive program like Imarticus Learning’s IIM Lucknow Courses in Financial Services and Capital Markets offer deeper insights and arm executives with the capabilities that complement their knowledge in corporate banking.

Consumer Needs are at the Forefront of Digital Transformation in Banking

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Consumer Needs are at the Forefront of Digital Transformation in Banking

‘Going digital’ applies to so much more than just using social media or moving data to cloud devices. In the banking sector, it relates to a complete overhaul of the way banks and credit unions understand, contact and please customers– the digitization in banking as they call it.
The first step to a successful digital transformation in the banking sector starts with an understanding of the attitudes, desires, and choices of digital consumers. It then leads to major consumer-centered improvements in order to meet these needs to retain customers and stay ahead of the competition.
It may look like banking institutions are lockstep in their advancement towards goals, but consumers are continuously raising expectations, which means a complete change of approach is in order. It’s especially important to be aware of consumer needs in a time when leaving a bank and opening a new account elsewhere is an easy process– an aspect every good new age banking course will endeavour to cover.
So what does today’s financial customer want?
The top five consumer desires, according to recent surveys, are:

  • Rewards for business
  • Simplification of life with 24/7 access to balance
  • The bank’s knowledge of them as a customer and an individual
  • The bank looking out for them with wealth-building advice
  • The anticipation of needs and insights on how to spend budgets and save money

Rewards for business and transactions
Banks have become a lot more than a place to deposit your money and garner interest– they’re now a place where people come to do business, transact for loans, send and receive money and get personalized offers. A big ask of consumers today is that they want to be rewarded for their business, by way of reward programs through points, vouchers, coupons, gifts or discounts.
Mobile access to services
As explained in many a new age banking course, today’s digital customer wants to be able to access their balance and keep track of expenditure no matter where they are. To keep up with this demand, banks are releasing apps with increasingly intelligent features like chatbots and voice assistants. An added perk that banks can provide is allowing customers to look at spending patterns and make use of money management and budgeting tools.
Personalization schemes
A stand-out indication of the change in consumer mentality within the financial and banking sectors is that customers at their bank or credit union don’t want to be just a number anymore. They want to be recognized as individuals with varying needs and preferences, not even categories or target groups as was once the process of ‘personalization’.
Switch to digital channels
Gone are the days when people head to their banks to directly withdraw cash or make other monetary transactions. Today, consumers prefer digital channels like tablets, laptops, and smartphones– meeting face-to-face comes second in the list, followed by phone banking. This represents how the omnichannel need of a consumer is fast arising, regardless of the age or income.

Conclusion
Consumers today want personalization and digitization and want their hand in hand. Any level of customer dissatisfaction can be analyzed to understand the root cause and identify if there is a new age banking solution. This will help any bank gain favor among the masses, specifically the digital natives.

How Asset Management Helps You Sell Better, Faster and Smarter?

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An asset is a resource that is owned by any business concern. Assets are both tangible and intangible. Equipment, machinery, etc. are some of the tangible assets whereas patents, copyrights, etc. are intangible assets. Assets also help in determining the worth of the company as there is a monetary value that is hidden in it.

Asset management is nothing but a systematic process of dealing with the assets a company possesses. It involves activities that are directly related to assets such as asset development, asset up-gradation, disposal of assets, maintenance of assets and so on.

The main motive of asset management is to optimize costs and also reap the best benefits one could get from a particular asset. Also, asset management involves managing assets according to the nature of the company e.g. A bank’s main asset is the money it holds. So, it will try to optimize its earning by the means of transaction costs, etc. on the other hand the main asset for any manufacturing concern would be its equipment and machinery so, it will lay its focus on maintenance and upkeep of the machinery.

What are the benefits of asset management?

The main agenda of managing assets is to either gain appreciation in the value as in the case of real estate or to make the most out of a particular asset that has a limited life span as in the case of factories. Also, assets are managed to mitigate risks. Asset management aims to ensure that with a minimum investment, the returns received are infinite.

Who offers the services of asset management?

The Asset Management Training is generally offered by financial institutions who are subject matter experts on “what is to be done with assets of a particular company.”

An asset manager makes a portfolio that promises high returns to a particular company with the number of assets available with them. His major job is to balance out the risks involved with suitable results.

The asset manager procures materials such as security papers, bonds, etc. from the Capital market and then make decisions on the basis of his client’s willingness to take risks. He considers all kinds of social, political and legal factors before making his move.  He has the final say in such decisions.

How does asset management ensure easy and quick revenues?

The main focus of asset management is to maximize the value of returns which can be gained by any asset. In a production concern, assets are taken good care of so that the machinery can run smoothly for long hours, hence producing a lot in a single day. The asset which plays a major role in any company is cash. Proper management of cash can solve a lot of problems for any company.

An asset manager with the consent of the company invests the company’s money in various avenues so that the available money multiplies in a short period of time. Also, an asset management company advises its clients on what assets to procure. A major example of this would be Mergers and Acquisitions.

An asset manager advice its client on what companies it can acquire to expand its business operations. He helps in purchasing assets as a part of investment strategy and then improves the state of the asset and resells the products made out of it or the asset itself at a much higher rate.

An asset manager helps in selling better by optimizing economies of scale and reaping the most out of the limited resources. Asset management also involves the computation of life cycles and additional costs involved with a particular asset. This translates into both long term and short-term financial planning hence, giving a clear direction to the company and optimizing profits.

Conclusion

Asset management is important if you want to reap out the maximum benefits from the available assets. It will bring out the benefits faster and more efficiently. It will help in making the best use of resources thus making the sales of a particular product smooth, multiplying revenues and making use of everything smartly and involving minimal costs. Hence, it proves to be a boon for companies.

4 Steps To Increase Cyber Resilience In Wealth Management?

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No amount of wealth management training is sufficient to protect a person’s assets from the dangers of phishing attacks and other malware. The best strategies against cyber attacks are by being vigilant and strengthening the foundations of security.
This is where a new term- cyber resilience, comes into the picture. Put simply, cyber resilience is the process of making defense systems more agile by combining the best of cybersecurity and business resilience. It can be defined as a business’s or organization’s ability to adapt to attacks in a fast-paced environment.
It has become an important part of wealth management training setups that emphasize on the core strengths of highly‌ ‌structured‌ ‌security systems are 4 strategies to do so.
Prepare And Identify Threats
An important part behind any good cyber resilience strategy is to properly identify actions for when the cyber event will occur. Using a bundle of defender tools and data trackers, businesses can know the weak points in the chain of security and act accordingly to prevent any mishaps. Preparedness also involves being able to deal with specific emergency management business functions such as asset management, debit and credit checks, human resources, strategic planning, financial management, and risk management.
Surprisingly, there is a lack of well-documented procedures that should be followed in the event of a cyber attack. Dynamic business environments have to create their own methods with some references from established sources such as the EU General Data Protection Regulation.
Detect Different Attacks
Vigilance, above all, is necessary. Focus on activities to rapidly identify when an attack is to occur and ensure there are proper contingencies in place to substitute for the systems that may be affected when things go wrong. This strategy involves the use of monitoring networks for indicators and keeping safeguards that come into action automatically. There can be a wide variety of attacks including the common DOS(Denial Of Service) attacks.
In the scope of wealth management training, this could be a secondary app or form that caters to use needs during maintenance checks or the use of DNS Reverse Search Lookups to increase security. More importantly, the system should not treat an anomaly that occurs in the mainframe as an attack if it doesn’t cause any mishaps. The reason for the distinction is to prevent this from occurring.
Build Effective Response Systems
Instead of being dependent on the security setups of a singular platform to manage wealth and capital, invest some money in auxiliary systems to support the current network. Incident reports and response plans must be drafted and circulated among users along with some roles that should be assigned to potential members of the organization.
But instead of using machines as tools for response systems, certain individuals must be delegated to ensure safety. Appoint a team leader or a manager to check the system security frequently and produce reports to its health. Another person in the team should have the responsibility of incident checks, coordinating response team activities, and communicating status reports to upper management.
Recover And Review
Use the review systems to restore any affected data. The flow of money should never be affected especially when the concentration of transactions increases exponentially with the number of users. A good means of implementing this is through the use of methodologies like SCRUM that stress on a cyclical procedure to assess attacks and respond to them.
An effective cyber resilience strategy looks at developing and implementing appropriate methods to restore data points and services immediately after an attack. Keeping enough number of phase gates for identity checks or using an SSL(Secure Socket Layers) can help implement these strategies to a great degree.
For more details, you can also visit – Imarticus Learning or can contact us through the Live Chat Support system or can even visit one of our training centers based in – Mumbai, Thane, Pune, Chennai, Banglore, Hyderabad, Delhi, Gurgaon, and Ahmedabad.

What Is Digital Transformation in Retail Banking and The Role of Data?

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Today’s financial services industry is nothing like what it was a decade ago. Changing customer behavior boosts in technology and intelligence and the general digitization of society is what’s behind this massive change. Over the past few years, banks have had to pull their socks up and get with the times to stay afloat. For many, this meant a digital transformation.

What is a digital transformation?
Digital transformation is the integration of new-age technology into all aspects of a business. It branches off into two– the fundamental changes in operations and client services, and the cultural transformation that follows in its wake.

Digital transformation in retail banking is driven by the need to speed up growth. In fact, 87% of banks have a long-term plan for digital innovation in place already. It’s just as well, seeing as online banking systems and third-party companies such as Paypal and Google Pay continue to threaten traditional banking organizations.

Investments in data analytics and the cloud are on a steady plateau, but expenditure on next-gen technologies like blockchain and Artificial Intelligence is on the rise.

Where are these technologies used in retail banking?
Customer service: Customers are increasingly choosing their primary financial service providers based on how easily they can operate and access their assets and how mobile the system is.

Digital IDs: Biometrics-based solutions enable customers to register once and be recognized each time. This increases operational efficiency and tightens security.

Voice banking: Voice authentication and banking are largely untapped, but it’s only a matter of time before AI-powered digital assistants catch on just in the retail banking sphere just as digital transformation, in general, did.

Distributed ledger technology: Traditional retail banks maintain central databases but they’re slowly making the shift to blockchain systems, where there’s no need for intermediaries or central authority.

What is the role of data in retail banking’s digital transformation?
Retail banks are inherently data-driven businesses. How well they use customer data insights is what gives one bank a competitive edge over another. Small wonder, then, that the role of data in extremely crucial in the digital transformation of retail banking.

Here is a quick breakdown of how data can be used in new-age banking:

Hyper-personalization: Too often, traditional banks have tried to target individuals based on crude segmentation that does more harm than good. With new-age technology, data analytics on consumer information can identify how to effectively target audience in an age where banking is no longer a life-long commitment.

Insight-driven services: Retail banking needs data to establish and promote insight-driven services that add value. A lot more is asked of a retail bank today than 10 years ago, and not just in terms of interest rates and lockers for valuables. Banks must come across as having customers’ best interests in mind to establish brand loyalty and drive numbers.

Personal Finance Management: with data and technology, banks can better cater to customers and assist them in managing their money efficiently. Personal and relationship managers have long been a part of the retail banking system. But with the help of data analytics and technology, banks can deliver into insights that once eluded them, thereby making the system more efficient and personalized.

The retail banking sector is in for a rough few years, but the silver lining is that banks already have a headstart on client relationships. Using digital banking to leverage these personal connections can make retail banks far more indispensable than their online competitors.

What does this mean for employees and aspirants?
Traditional methods and syllabi can only go so far in preparing you for digital disruption. New-age banking courses can effectively prepare people of all experience levels for the digital age. The better banking courses are those that will give you hands-on experiences and allow you to interact with industry professionals to see how the digitization has transformed their daily work.
Retail banking training can also be organized by the banks themselves. Introduction to these technologies is crucial to maintain stability during cultural and structural changes. To learn new-age banking is to prepare oneself for the future.

What Are The Sources To Learn Corporate Banking?

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The scope of a job in Corporate Banking depends and varies depending on the following factors. These factors are:

The bank that employs you:

All banks do not offer the same bouquet of services. Some focus on smaller firms and the middle-market segment requiring a variety of skills specific to the field of work. Your knowledge base and skills required may be different when you work with the larger banks.

Further, some banks may offer certain specialized services like infrastructure finance or asset-backed lending and so on. You will soon discover that no matter where you learn corporate banking you practice on the job and what you study depends also on whom you work for. Chase Bank and Citi Group of banks have the best corporate banking divisions.

In which country you are employed:

Banks have to be licensed to operate in a country and provide key services. Often the particular country may not have the required infrastructure or availability of local talent to fill specific job roles and key areas. As an example consider that in Western Europe one needs to incorporate a legal entity in Germany alone to offer cash management services. After Brexit happens the UK will need a similar procedure. This restricts the bank’s offerings and their payouts also need to be on par with the areas average payouts.

The area of operation in the bank:

Banks offer a variety of roles in corporate banking. You could be from the technical/ administrative support areas, a relationship manager, or the treasury products sales associate, or a specialist in account opening. The area of operation and job roles varies and so also do the payouts, skills or learning required. Blockchains are the buzz word and a lot of hiring is around this technology. Anti-laundering, risk-management, compliance, and regtech are also very happening areas requiring skills depending on the job role and operational area of the bank.

Since you will have to suit your job, one of the best routes to learn corporate banking is to do a course at reputed institutes like the Imarticus Learning Academy. The banking courses are not all that different. What sets Imarticus apart, is that they offer specialization courses to both career seekers and career changers suited to their interest areas and equipped with certifications to advance your career.

Corporate Vs Investment banking:

The corporate banks are IBs who are also lenders of capital at various scales and from different branches under the same umbrella. They could be direct investors and most often act as intermediaries helping to raise investment capital. Some examples are of companies raising funds are in the issuances of bonds, IPO’s and OIUs. Different branches like retail banking, corporate finance, wealth management, etc are involved in offering funds to corporate firms, syndicated financial institutions and the governments for infrastructure projects.

IB also deals with HNI individuals, syndicated funds, etc to SMEs and retail products like credit/debit cards, bank accounts for individual investors. IB often plays the role of an intermediary in the acquisitions and merger deals. They advise on equity markets, mutual fund investments, and play a consultant to borrowers in their financial and borrowing journeys. Their profits are in the interest rates, charged fees, consultancy retainers and such. Banks may also have in-house trading facilities.

The key differences:

The main difference between corporate banking and investment banking is in whom they lend to. The banks offer loans at interest. Banks can be the intermediaries of the venture capital deals and the M and A deals. They also target different kinds of customers. The banks are relatively risk-averse and have investors and borrowers from whom they earn fees or interest for their involvement. IBs work with financial institutions and firms who also have access to global markets, and capitals markets abroad. Corporate bankers specifically work with institutions, corporate firms, churches; foundations, etc helping them invest their funds and offering them loans.

If you are interested to learn corporate banking the courses at Imarticus Learning are highly recommended. The banking jobs are prestigious, pay well and are constantly facing a demand for well-trained professionals.

IB career-scope and payouts:

In terms of career prospects, salaries, job roles, and working conditions there is a lot of overlap between various divisions in the investment banking sectors. However, corporate banking has a slight lead in job prospects. According to Payscale reports, in early 2004, the average IB salary was USD 315,000. Ten years later the figures for the IB salary was USD 288,000. Investopedia claims the average 2015 banker’s salary was between USD 75,000 to 85,000.

Conclusions:

Corporate bankers are important as they are client-facing jack-of-all-trades bankers with a wide knowledge and skills base. You can learn corporate banking at Imarticus Learning where careers are born and honed. Start today!

For more details and for further career counseling, you can also contact us through the Live Chat Support system or can even visit one of our training centers based in – Mumbai, Thane, Pune, Chennai, Banglore, Hyderabad, Delhi, Gurgaon, and Ahmedabad.

A Career Guide To The Field Of Finance

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What does having a career in finance mean? It refers to job opportunities in a variety of fields. These fields are namely, Investment Banking, Trading, Financial Advisory, Analytics, Financial Media, Financial Analysis, Portfolio Management, Corporate Finance, Asset Management, Mergers and Acquisitions and so on. One thing common among all of these fields of finance is that a career in any of them is extremely lucrative.
This is one of the main reasons as to why candidates aspire to become highly qualified professionals in the field of Finance. While some take the route of education, go on to get graduated in any related field of Finance, then go ahead and do their masters and MBA and then look for a job. There are also quite a few who choose to go the way of the industry. By taking up professional training courses, like those offered by institutes like Imarticus Learning, these individuals are able to develop a skillset, which is way more relevant to the industry and is exactly what HR Managers are on the lookout for.

Let’s go further and discuss the various credentials that the field of finance has. As is common with every field out there, Finance also happens to have its very own professional qualifications and licenses. These include, the Chartered Financial Analyst (CFA), Certified Financial Planner (CFP), Certified Public Accountant (CPA), as well as a series of licenses.
These series of licenses are for instance Series 7 & Series 63, both of which are usually issued by the Financial Industry Regulatory Authority (FINRA). Both the series of licenses, require a professional to complete a course of study and passing an exam. While these licenses work as a legal requirement, the certifications or credentials like CFA are more of resume boosters, which give great prestige to the holder.
Most of the concentration of Financial Jobs can be found in all of those cities, which are considered to be international centers of finance all over the world. These could cities like New York, London, Hong Kong, Shanghai, Dubai, and Zurich and so on. If you happen to be looking for a job, which is based in a foreign country then you must ensure that you know the basics of the native language therein.
While it may seem that your city or state does not happen to have great and stellar corporations, this does not mean you should despair. For all of those who are aware of the concept of globalization, it seems to be happening at a more rapid speed. Many large banking corporations like JP Morgan and the likes happen to have hedge funds and smaller money management firms situated in a number of locations lately.

What is the difference between Retail and Corporate Banking?

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Retail Banking and Corporate Banking Overview

Retail and corporate banks are among the most important contributors to India’s economic growth and development. However, they both operate differently and offer different banking services. So, the major difference between retail and corporate banking is their target customers. 

Retail banking provides financial services to individuals and small businesses. Whereas, corporate banking is more geared towards larger quantities of loans and investment products to business conglomerates and companies.

Retail banking is the public’s first impression of banking, with bank branches in major cities. In comparison, corporate banking works with businesses to issue them loans and provide credit. Along with this they also offer savings accounts and checking accounts designed for companies. They don’t serve individuals.

Major differences between Retail Banking and Corporate Banking 

  1. Clientele 
  2. Amount of money involved
  3. Services offered
  4. Amount of money produced

What is Retail Banking?

A retail banking division deals directly with retail customers. Clients can get various products and services from retail banks. That includes credit and debit cards, mortgages, and personal loans. In addition, retail banking also includes checking and savings accounts and offers investment advice. Retail banking is also termed consumer or personal banking. And, it includes smaller personal investments of clients.

Features of Retail Banking

Small size transactions

Retail banks have small-size transactions. As the amount involved in issuing a car loan, personal loan, or fixed deposit is not high.

Less amount of risk involved

Retail banks lend a small amount of money to their customers. For instance, if a retail bank lent a loan of Rs. 10 lakhs. And, the borrower couldn’t return the amount, the loss is only ten lakhs. As a result, the risk is also low.

Multiple branches

Retail banks must open more branches in places to attract clients and increase the client base. So, you can see many branches of retail banks across the cities.

High administrative and operational costs

Retail banks have a lot of branches and have to spend a large amount of money. Therefore the major expenses are on facilities, staff, and other operations. Therefore, overall expenditure on administration and operation is increased.

Offer multiple services to the customers

Retail banks provide

  • The facility of opening saving bank accounts.
  • Offering credit and debit cards.
  • Lending car loans.
  • Personal loans.
  • Various other types of loans to customers.

In addition, selling mutual funds and products like insurance are some of the services retail banks provide.

Deals with a high level of competition

Many players in the market offer retail banking services. So, competition not only increases due to the presence of many players. Furthermore, this is because of interest rate struggles. The retail banking market constantly competes to offer more services at a lower interest rate. 

What is a Corporate Banking?

It refers to the customised financial services provided to businesses. A major focus is to help firms finance themselves and raise capital. Examples of corporate banking are employer services, commercial services, cash, and risk management.

Features of corporate banking

Business Clients

Corporate banks offer services to large conglomerates and middle and small-sized organisations. 

Getting a corporate account is not easy

The firm must get a consensus from the board of directors to open a corporate account in the corporate bank. Generally, the company treasurer is responsible for opening corporate accounts for the business.

Independence and safety

The corporate account’s content can not be accessible by the personal creditor of the board of directors. The corporate accounts are supposed to be the corporate bank’s property and not the board members. So, corporate accounts give more freedom and security to the account holders.

Credit Rating 

The applicable interest rates, the share price of the company, and overall valuation depend on the functioning or conduct of the corporate accounts.

Handsome salaries of the corporate bankers

For establishing and running a corporate bank smoothly, experts are needed. In addition, a high level of expertise is required for corporate banks to develop and function. Corporate banks’ complexities and expertise are hard to handle. That’s why corporate bankers are highly paid.

Major differences and comparisons between retail and corporate banking

Comparison Base Retail Banking Corporate Banking
Offered Services

Standardised

Customised 
Customer Base

Large

Small
Transaction Values

Low to moderate

High
Operating Cost

Higher

Lower

Let us now understand the difference between retail and corporate banking in detail.

Offered Services

Retail banks provide standard services like opening savings accounts and issuing credit or debit cards. They also provide loans such as personal loans and vehicle loans, etc. Corporate banking offers services to small or mid-size companies and business conglomerates. These services offer cash, credit and risk management, etc.

The difference in customer base

The most common and evident difference between retail and corporate banks is their customer base. Retail banks have a large customer base hausarbeiten schreiben lassen. Whereas corporate banks are limited to a few business clients like mid-small companies. 

Transactions 

Retail banks involve limited transactions. Whereas corporate banks lend massive amounts of money to their business clients hausarbeit kaufen. Therefore, the transactions involved in retail and corporate banks significantly differ.

Processing or operating cost

Multiple branches, locations, and a large staff add to a retail bank’s operational and processing costs. On the other hand, corporate banks provide limited services and have few office locations studienarbeit schreiben lassen. All this results in low operating costs.

The final takeaway 

The differences between retail and corporate banking will help me choose a field. In addition, Individuals can decide the field of their interest app erstellen lassen. In addition, this information is also helpful for the existing bankers and banks. So, retail banking and corporate banking sectors are excellent career choices for banking aspirants. 

Imarticus learning offers courses in the finance and banking sector. So, you can get in touch with our team and decide the course of your interest Statistik beratung.  Our team will guide you about careers in finance and banking. In addition, our experts will make your journey easy and successful. At Imarticus Learning we are happy to suggest and show you the path to a successful banking career.

Introduction to Reference Data Management

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What is Reference Data Management?
Reference data management is a process that drives efficiency across the market by maintaining high data quality standards.

What does reference data management provide?
It provides full terms and conditions data, including ratings and descriptive content, for each asset type.
Reference data maintains extensive market-level and issue-level industry standard numbering codes. These are associated with each equity instrument including official clearing code identifiers (SEDOL, CUSIP, ISIN, CINs, Local Exchange codes MIC).

Type of Reference Data:
Reference data includes static and dynamic.
Static Reference data – Data elements that have unalterable characteristics.

E.g.:
• Financial products specifications and expiration dates
• Information about counterparties and supply chain partners.
Dynamic reference data – Variable data such as closing and historical prices.

Why is reference data management required?

The market data for a particular instrument includes:
• An identifier of the instrument and
• Where it was traded – such as the ticker symbol and exchange code
• The latest bid and ask price and the time of the last trade
• Volume Traded
• Bid and offer sizes
• Static data about the financial instrument from a variety of sources.

Hence, they require Reference data management.

Reference data is utilized across the front, middle, and back-office systems of an investment bank. It helps banks and financial institutions reduce exposure to counterparty credit risk. It also manages capital and liquidity. All this is achieved by leveraging an Intelligent Data Platform.

What are the advantages of a reference data platform?

• Manage and deliver reliable reference data across the system and existing reference centers.
• Create a single source of the truth through onboarding the new entity identifier and cross-reference it with existing entity information and identifiers.
• Streamline hierarchy structures.
• Deliver and syndicate data to any system in any format, latency, or structure.

We at Imarticus Learning constantly update our course curriculum to enable you to build a firm foundation for sound careers in banking by contributing to resolving the challenges faced by the investment banking industry.

Reference data management is one of the top challenges faced by investment banks in 2016 and also a crucial part of our syllabus. This not only enables you to grab a coveted job but also keeps those already a part of the industry updated with the recent trends.