Difference Between Commercial Banking And Retail Banking

A retail bank functions along with customers. One of the banks that works with businesses is the commercial bank. Nevertheless, a lot of banks give products and services to their customers and businesses and are generally called commercial banks. The fundamental bank services given by the commercial banks to the customer include:

• Checking and savings accounts

• Certificates of Deposit

• Safe deposit boxes

• Loans including Mortgages

• Credit cards

• Other related products

There are nearly 7,000 commercial banks in the United States. In the commercial world of bank, there are banks with various sizes and kinds.

They are:

A) National Banks – There are bigger banks which have their branches and interests in the country. They have

• Private banking - Private Banks give banking services especially for the high net worth customers. Most of the financial services companies want the individual of a family to possess minimum net worth in order to meet the criteria for services of private banking. Personal services like, wealth management and tax planning are given by the private banks as compared to the normal retail banks.

• Brokerage services - Brokerage services help in purchase and sale of financial securities between the buyer and the seller. In today’s period, the services of stock brokers and brokerages can be done online to self trade investors around the world who can trade with the tied online business base given by the banks or through online business base which is given in a group called Online Trading Portals.

1.8 Non Banking Financial

These institutions cannot take deposits from the customer depending on the authority. However, these institutions are operated by the banking rules and regulation of the country.

The particular products of banking are provided by NBCs depending upon the authority, and could involve services like that of loans and credit, savings, investments and money transfer. In certain areas like, New Zealand, any institution can do business in banking, except that they cannot make use of the word ‘bank’ along with their name. An institution can name itself a bank only if it registers itself with the national central bank.

Most of the banking services are given by the NBFCs, like loans and credit facilities, funds for private education, retirement plans, doing business in money market, underwriting stocks and shares, Term Finance Certificate and other requirements. These institutions also facilitate wealth management like, portfolio management of stocks and shares, discount services like, of instruments and recommending collaboration and possession activities. Many non-banking economic institutions have come up considerably in the past years as venture capital institutions, retail and industrial are now into lending businesses. Non-bank companies give regular support to investing in property and provide feasibility, business or