{"id":39503,"date":"2019-02-20T23:57:51","date_gmt":"2019-02-20T18:27:51","guid":{"rendered":"https:\/\/staging-imarticus.kinsta.cloud\/?p=39503"},"modified":"2023-11-29T05:44:31","modified_gmt":"2023-11-29T05:44:31","slug":"what-is-the-difference-between-retail-and-corporate-banking","status":"publish","type":"post","link":"https:\/\/imarticus.org\/blog\/what-is-the-difference-between-retail-and-corporate-banking\/","title":{"rendered":"What is the difference between Retail and Corporate Banking?"},"content":{"rendered":"

Retail Banking and Corporate Banking Overview<\/h2>\n

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.\u00a0<\/span><\/p>\n

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.<\/span><\/p>\n

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.<\/span><\/p>\n

Major differences between Retail Banking and Corporate Banking\u00a0<\/strong><\/h2>\n
    \n
  1. Clientele\u00a0<\/b><\/li>\n
  2. Amount of money involved<\/b><\/li>\n
  3. Services offered<\/b><\/li>\n
  4. Amount of money produced<\/b><\/li>\n<\/ol>\n

    What is Retail Banking?<\/b><\/h2>\n

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

    Features of Retail Banking<\/b><\/h2>\n

    Small size transactions<\/b><\/h3>\n

    Retail banks have small-size transactions. As the amount involved in issuing a car loan, personal loan, or fixed deposit is not high.<\/span><\/p>\n

    Less amount of risk involved<\/b><\/h3>\n

    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.<\/span><\/p>\n

    Multiple branches<\/b><\/h3>\n

    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.<\/span><\/p>\n

    High administrative and operational costs<\/b><\/h3>\n

    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.<\/span><\/p>\n

    Offer multiple services to the customers<\/b><\/h3>\n

    Retail banks provide<\/strong><\/p>\n