|Part of a series on financial services|
Retail banking, also known as consumer banking, is the provision of services by a bank to the general public, rather than to companies, corporations or other banks, which are often described as wholesale banking. Banking services which are regarded as retail include provision of savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards. Retail banking is also distinguished from investment banking or commercial banking. It may also refer to a division or department of a bank which deals with individual customers.
A bank is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial stability of a country, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords.
Wholesale banking is the provision of services by banks to larger customers or organizations such as mortgage brokers, large corporate clients, mid-sized companies, real estate developers and investors, international trade finance businesses, institutional customers, and services offered to other banks or other financial institutions.
A savings account is a deposit account held at a retail bank that pays interest but cannot be used directly as money in the narrow sense of a medium of exchange. These accounts let customers set aside a portion of their liquid assets while earning a monetary return.
In the U.S., the term commercial bank is used for a normal bank to distinguish it from an investment bank. After the Great Depression, the Glass–Steagall Act restricted normal banks to banking activities, and investment banks were limited to engaging capital market activities. That distinction was repealed in the 1990s. Commercial bank can also refer to a bank or a division of a bank that deals mostly with deposits and loans from corporations or large businesses, as opposed to individual members of the public (retail banking).
A commercial bank is a type of bank that provides services such as accepting deposits, making business loans, and offering basic investment products that is operated as a business for profit.
An investment bank is a financial services company or corporate division that engages in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated with corporate finance, such a bank might assist in raising financial capital by underwriting or acting as the client's agent in the issuance of securities. An investment bank may also assist companies involved in mergers and acquisitions (M&A) and provide ancillary services such as market making, trading of derivatives and equity securities, and FICC services. Most investment banks maintain prime brokerage and asset management departments in conjunction with their investment research businesses. As an industry, it is broken up into the Bulge Bracket, Middle Market, and boutique market.
The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States. The timing of the Great Depression varied across nations; in most countries it started in 1929 and lasted until the late-1930s. It was the longest, deepest, and most widespread depression of the 20th century. In the 21st century, the Great Depression is commonly used as an example of how intensely the world's economy can decline.
Typical retail banking services offered by banks include:
American English, sometimes called United States English or U.S. English, is the set of varieties of the English language native to the United States. It is considered one of the most influential dialects of English globally, including on other varieties of English.
British English is the standard dialect of English language as spoken and written in the United Kingdom. Variations exist in formal, written English in the United Kingdom. For example, the adjective wee is almost exclusively used in parts of Scotland and Ireland, and occasionally Yorkshire, whereas little is predominant elsewhere. Nevertheless, there is a meaningful degree of uniformity in written English within the United Kingdom, and this could be described by the term British English. The forms of spoken English, however, vary considerably more than in most other areas of the world where English is spoken, so a uniform concept of British English is more difficult to apply to the spoken language. According to Tom McArthur in the Oxford Guide to World English, British English shares "all the ambiguities and tensions in the word 'British' and as a result can be used and interpreted in two ways, more broadly or more narrowly, within a range of blurring and ambiguity".
A debit card is a plastic payment card that can be used instead of cash when making purchases. It is similar to a credit card, but unlike a credit card, the money is immediately transferred directly from the cardholder's bank account when performing a transaction.
In some countries, such as the U.S., retail bank services also include more specialised accounts, such as:
A sweep account is an account set up at a bank or other financial institution where the funds are automatically managed between a primary cash account and secondary investment accounts.
A money market account (MMA) or money market deposit account (MMDA) is a deposit account that pays interest based on current interest rates in the money markets. The interest rates paid are generally higher than those of savings accounts and transaction accounts; however, some banks will require higher minimum balances in money market accounts to avoid monthly fees and to earn interest.
Community development bank (CDB) or Community Development Financial Institution (CDFI) is a development bank or credit union that focus on to serving people who have been locked out of the traditional financial systems such as the unbanked or underbanked in deprived local communities. They emphasis the long term development of communities and provide loans such as micro-finance or venture capital.
Private banking is banking, investment and other financial services provided by banks to high-net-worth individuals (HNWIs) with high levels of income or sizable assets.
High-net-worth individual (HNWI) is a term used by some segments of the financial services industry to designate persons whose investible assets exceed a given amount. Typically, these individuals are defined as holding financial assets with a value greater than US$1 million.
A bank account is a financial account maintained by a bank for a customer. A bank account can be a deposit account, a credit card account, a current account, or any other type of account offered by a financial institution, and represents the funds that a customer has entrusted to the financial institution and from which the customer can make withdrawals. Alternatively, accounts may be loan accounts in which case the customer owes money to the financial institution.
Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companies, consumer-finance companies, stock brokerages, investment funds, individual managers and some government-sponsored enterprises. Financial services companies are present in all economically developed geographic locations and tend to cluster in local, national, regional and international financial centers such as London, New York City, and Tokyo.
A transaction account, also called a checking account, chequing account, current account, demand deposit account, or share draft account at credit unions, is a deposit account held at a bank or other financial institution. It is available to the account owner "on demand" and is available for frequent and immediate access by the account owner or to others as the account owner may direct. Access may be in a variety of ways, such as cash withdrawals, use of debit cards, cheques (checks) and electronic transfer. In economic terms, the funds held in a transaction account are regarded as liquid funds. In accounting terms they are considered as cash.
A savings and loan association (S&L), or thrift institution, is a financial institution that specializes in accepting savings, deposits, and making mortgage and other loans. The terms "S&L" or "thrift" are mainly used in the United States; similar institutions in the United Kingdom, Ireland and some Commonwealth countries include building societies and trustee savings banks. They are often mutually held, meaning that the depositors and borrowers are members with voting rights, and have the ability to direct the financial and managerial goals of the organization like the members of a credit union or the policyholders of a mutual insurance company. While it is possible for an S&L to be a joint-stock company, and even publicly traded; in such instances it is no longer truly a mutual association, and depositors and borrowers no longer have membership rights and managerial control. By law, thrifts can have no more than 20 percent of their lending in commercial loans — their focus on mortgage and consumer loans makes them particularly vulnerable to housing downturns such as the deep one the U.S. experienced in 2007.
Postal savings systems provide depositors who do not have access to banks a safe and convenient method to save money. Many nations have operated banking systems involving post offices to promote saving money among the poor.
The Dubai-based Mashreqbank psc is the oldest privately owned bank in the United Arab Emirates. Founded as the Bank of Oman in 1967, Mashreq was the first UAE bank to install ATM cash dispensers, the first to issue debit and credit cards and the first to introduce consumer loans. Today Mashreq provides conventional and Islamic personal banking services including deposits, loans and credit cards; conventional and Islamic investment banking services including corporate finance and investment advisory on mergers and acquisitions, initial in public offering and underwriting; conventional and Islamic asset management services including wealth management.
Banco de Oro (BDO), legally known as BDO Unibank, Inc., is a Philippine banking company based in Makati. In terms of total assets, the firm is the largest bank in the Philippines, fifteenth largest in Southeast Asia, 116th largest in Asia, and the 234th largest bank globally as of March 31, 2016. BDO Unibank is also a member of SM Group owned by the late Henry Sy. It is also the largest bank in the country by market capitalization.
First Active was an Irish bank, and former building society which was merged into Ulster Bank in late 2009, ceasing trading in February 2010. It traditionally offered a range of mortgages, savings, investment, pension and life assurance products, but from 2007 onwards, also offered credit cards, ATM accounts and current accounts as well as online banking and Laser/Maestro debit cards.
HSBC Bank Australia Limited was granted a banking licence in 1986 by APRA having been established as HSBC Finance Company Limited in 1965. It is part of the worldwide HSBC Group. HSBC Bank Australia is a foreign bank in Australia, offering a wide range of banking products and services to the retail, commercial, corporate and institutional sectors.
First Internet Bancorp is a bank holding company that operates First Internet Bank of Indiana, sometimes called First Internet Bank or First IB, one of the first state-chartered, Federal Deposit Insurance Corporation-insured institutions to operate without physical branches.
WSFS Financial Corporation is a multibillion-dollar financial services company. Its primary subsidiary, WSFS Bank, is the oldest and largest locally managed bank and trust company headquartered in the Delaware Valley. WSFS operates from 77 offices located in Delaware, Pennsylvania, Virginia, and Nevada, and provides comprehensive financial services including commercial banking, retail banking, cash management and trust and wealth management. Other subsidiaries or divisions of WSFS Financial Corporation or WSFS Bank include Cash Connect®, Christiana Trust, Christiana Trust Company of Delaware, Cypress Capital Management, Powdermill Financial Solutions, WSFS Wealth Investments, West Capital Management, WSFS Mortgage and Arrow Land Transfer.
During the 1990s and 2000s, China's banking system underwent significant changes: banks are now functioning more like Western banks than before. Nevertheless, China's banking industry has remained in the government's hands even though banks have gained more autonomy. China is now a member of the World Trade Organization, as of December 11, 2001. The central bank of China is the People's Bank of China.
Discover Financial Services, Inc., is an American financial services company that owns and operates Discover Bank, which offers checking and savings accounts, personal loans, home equity loans, student loans and credit cards. It also owns and operates the Discover and Pulse networks, and owns Diners Club International. Discover Card is the third largest credit card brand in the United States, when measured by cards in force, with nearly 50 million cardholders. Discover is currently headquartered in the Chicago suburb of Riverwoods, Illinois.
Citibank Berhad is a licensed commercial bank operating in Malaysia with its headquarters in Jalan Ampang, Kuala Lumpur. Citibank Berhad operates as a subsidiary of Citigroup Holding (Singapore) Private Limited. Commencing its banking operations in Malaysia in 1959, Citibank Berhad was locally incorporated in 1994.
KazInvestBank (KIB), previously KazInterBank, is a Kazakhstan commercial bank. On 27 December 2016, the Kazakhstan authorities revoked the licence of Kazinvestbank citing its repeated failures to process payments.
A deposit account is a savings account, current account or any other type of bank account that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the bank and represents the amount owed by the bank to the customer. Some banks may charge a fee for this service, while others may pay the customer interest on the funds deposited.
Cuscal Limited is an Australian company that predominantly provides transactional banking, liquidity and capital management services and products to institutional customers including credit unions, mutual banks and superannuation funds. Cuscal is regulated by the Australian Prudential Regulation Authority (APRA) as an Australian authorised deposit-taking institution (ADI), and by the Australian Securities and Investments Commission (ASIC). It is a member of EFTPOS Payments Australia and the Australian Payments Clearing Association.
Banco de Crédito de Bolivia is a banking and financial services company located in Bolivia. It is headquartered in La Paz and is a wholly owned international subsidiary of Banco de Crédito del Perú, Peru's largest bank. BCP Bolivia started its operations in the country following BCP's acquisition of the Bolivian bank Banco Popular. BCP Bolivia provides its products and services through operating 102 branches, 240 ATMs, call centers, and online and mobile banking platforms. Banco de Crédito de Bolivia is currently Bolivia's fourth largest bank by total assets.