Sunday, 1 April 2018

Retail Banking

Retail banking is also known as consumer banking. It is typical mass market banking in which the individual customers and small medium enterprises use local branches of large commercial banks. Retail banking offers various services include -deposits, certificate of deposits, advance loans, mortgages saving and checking accounts, personal loans, debit and credit accounts. 

The portfolio of retail banking comprises of three crucial elements-  credit , deposits , financial services .The banks which are currently focusing on retail banking to avail the business opportunities are-PNB, SBI, HDFC, ICICI, AXIS etc .Retail banking act as an engine of economic growth. 

Technology  is the key driver for retail banking and technology products like ATM , mobile banking,  card products like debit and credit cards help in enhancing the banking business .Impact of retail banking –revenue, saving, home economy, increasing personal wealth and purchasing power, industrial development, employment. Challenges of retail banking -  IT system complication, huge cost of maintenance,   KYC and money laundering, retention of customers.