Difference Between Retail Banking and Corporate Banking

Retail Banking vs Corporate Banking

The banking industry is divided into two major banking components known as retail banking and corporate banking. Retail banking includes products and services which are offered to individual customers. Corporate banking services are those products and services that cater specifically to corporate customers such as large corporations and small businesses. Both these banking divisions offer products and services that are designed to meet their own individual groups of customers. The article offers a comprehensive explanation on the two types of banking and shows the main similarities and differences between retail and corporate banking.

Retail Banking

零售银行直接向客户和个人提供服务，而不是其他银行和企业。零售银行服务由商业银行的个人获得。商业银行提供的主要服务包括接受存款，维持储蓄和支票帐户，以及为各种目的向个人提供贷款。除这些服务外，许多零售银行还努力为个人提供各种其他服务，以维持客户忠诚度和客户保留率。作为零售银行业务一部分提供的其他服务包括安全存款设施，退休计划，财富管理服务，私人银行业务等。某些零售银行可能会外包投资服务，而有些零售银行可能会将这些服务与储蓄帐户和其他银行产品联系起来。商业银行受到许多政府当局的高度监管，包括美联储和联邦存款保险公司（FDIC）。该法规对于保护客户及其资金很重要。

Corporate Banking

Corporate banking refers to the division in the banking industry that deals solely with businesses and firms. The corporate banking sector offers savings accounts, checking accounts, loan facilities, and credit facilities solely for companies and businesses. Corporate banking is the division of a commercial bank that only deals with corporate customers, and offers products and services that are tailored to meet the needs of corporate clients. The corporate banking industry offers loans, which may be secured or unsecured, and also could offer larger syndicated loans that may require the participation of a syndicate of banks. Other services that are offered include financial management, trade finance facilities, foreign exchange, custody, derivatives, etc. Corporate banking divisions also team up with investment banks to offer investment banking facilities such as IPO and underwriting services, securities trading, investment, and merger and acquisition services.

What is the difference between Retail Banking and Corporate Banking?

Retail banking and corporate banking services are offered mostly by commercial banks who maintain separate divisions for their retail customers and corporate clients. In some instances, commercial banks team up with investment banks to provide a number of investment banking capabilities to their business clients. Retail banking serves the needs of individual customers and includes services such as accepting deposits, maintaining savings and checking accounts, and providing loans to individuals for a variety of purposes. Corporate banking serves the needs of business customers and offers savings accounts, checking accounts, loan facilities, credit facilities, trade finance, foreign exchange, etc. solely for companies and businesses.

Summary:

Retail Banking vs Corporate Banking

• The banking industry is divided into two major banking components known as retail banking and corporate banking.

• Retail banks offer their services such as accepting deposits, maintaining savings and checking accounts, and providing loans directly to customers and individuals, instead of other banks and businesses.

• Corporate banking refers to the division in the banking industry that deals solely with businesses and firms and offers services such as savings accounts, checking accounts, loan facilities, credit facilities, trade finance, foreign exchange, etc.