Retail Banking.Definition

Retail Banking- Definition, Functions, Types, Products, Services

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Retail Banking- Definition, Functions, Types, Products, Services

Retail banking, also known as consumer banking, refers to banking services provided directly to individual consumers rather than businesses. It includes financial services like savings accounts, personal loans, credit cards, and mortgages.

Retail Banking.Definition

Functions of Retail Banking

  1. Accepting Deposits – Savings, current, and fixed deposit accounts.

  2. Providing Loans – Personal, home, auto, and education loans.

  3. Credit Facilities – Issuance of credit and debit cards.

  4. Fund Transfers – NEFT, RTGS, IMPS, UPI services.

  5. Investment Services – Mutual funds, insurance, fixed deposits.

  6. Bill Payments – Utility bills, mobile recharges, and taxes.

  7. Customer Support – Branch services, online helpdesk, mobile banking.

Types of Retail Banking

  1. Unit Banking – A single branch serving a local area.

  2. Branch Banking – Multiple branches across regions or cities.

  3. Virtual Banking – Fully online banking, no physical branches.

  4. Private Retail Banking – Tailored services for high-net-worth individuals.

Retail Banking Products

  • Deposit Products: Savings account, Fixed Deposit (FD), Recurring Deposit (RD).

  • Loan Products: Personal loan, Home loan, Auto loan, Education loan.

  • Cards: Debit card, Credit card, Prepaid cards.

  • Insurance & Investments: Life insurance, Health insurance, Mutual Funds.

 Example of Retail Banking

Example: A customer opens a savings account at HDFC Bank (India) or Bank of America (USA), gets a debit card, applies for a personal loan, and pays bills online—all services fall under retail banking.

Retail Banking vs Corporate Banking

Feature Retail Banking Corporate Banking
Customers Individuals Businesses/Corporations
Products Savings, Loans, Cards Business Loans, Trade Finance
Relationship Standardized Customized
Risk Low High
Loan Amount Generally Low High

Retail Banking Jobs

  • Bank Teller

  • Relationship Manager

  • Loan Officer

  • Customer Service Executive

  • Branch Manager

  • Credit Analyst

  • Sales Executive (Loan/Credit Card)

Required Skills:

  • Communication

  • Sales and marketing

  • Basic financial knowledge

  • Problem-solving

Retail Banking Services

  • Account opening and management

  • ATM and online banking services

  • Financial planning and advisory

  • Credit and debit card issuance

  • Loan processing

  • Customer support (in-person/online)

Retail Banking in Bangladesh

Overview

Retail banking in Bangladesh refers to banking services offered by commercial banks to individual customers. Over the past two decades, retail banking has grown rapidly in Bangladesh due to urbanization, digital adoption, and increasing demand for personalized financial products.

Major Retail Banks in Bangladesh

  1. BRAC Bank

  2. Dutch-Bangla Bank Limited (DBBL)

  3. Eastern Bank Limited (EBL)

  4. City Bank

  5. Islami Bank Bangladesh Limited

  6. Prime Bank

  7. Bank Asia

  8. AB Bank

  9. NCC Bank

These banks offer a wide range of retail products through branches, ATMs, and mobile banking platforms.

Popular Retail Banking Products in Bangladesh

  1. Deposit Products

    • Savings Accounts

    • Fixed Deposits (FD)

    • Monthly Savings Schemes (MSS)

    • Current Accounts

  2. Loan Products

    • Personal Loans

    • Home Loans

    • Auto Loans

    • Education Loans

  3. Cards

    • Debit Cards

    • Credit Cards (Visa, MasterCard, AMEX)

    • Prepaid Cards

  4. Digital Banking

    • Internet Banking (e.g., EBL SkyBanking, Citytouch)

    • Mobile Banking (e.g., bKash, Nagad, Rocket)

    • ATM & POS Services

⚙️ Retail Banking Services in Bangladesh

  • Account opening and KYC (Know Your Customer)

  • Fund transfer via BEFTN, RTGS, NPSB, UPI

  • Utility bill payments

  • Mobile wallet integration

  • Cheque book and card issuance

  • Locker services

  • Customer care (call centers, in-branch support)

Example Scenario

A young professional in Dhaka opens a savings account at BRAC Bank, receives a debit card, applies for a personal loan, and uses the BRAC Bank mobile app to transfer money and pay bills. This is a typical example of retail banking in Bangladesh.

Career Opportunities in Retail Banking (Bangladesh)

  • Customer Service Officer

  • Relationship Manager

  • Sales Executive (Loan/Credit Card)

  • Branch Operations Officer

  • Loan Officer

  • Credit Analyst

Preferred Qualifications:

  • Business or Finance degree

  • Good communication skills

  • Knowledge of local banking regulations

  • Experience in customer service or sales

Trends in Retail Banking in Bangladesh

  • Digital Transformation – Increasing use of mobile apps and internet banking.

  • Agent Banking – Banks reaching rural customers through agents.

  • Islamic Retail Products – High demand for Shariah-compliant products.

  • Women Banking Services – Specialized banking for women entrepreneurs and professionals.

Retail Banking Around the World

Retail Banking in India

  • Key Banks: HDFC Bank, SBI, ICICI Bank, Axis Bank, Kotak Mahindra Bank.

  • Features:

    • Wide branch network and growing digital presence.

    • Popular products: savings accounts, home loans, personal loans, fixed deposits.

    • Use of UPI, mobile apps (YONO, iMobile), and wallets (Paytm, PhonePe).

  • Trend: Rapid digital transformation and financial inclusion through PM Jan Dhan Yojana.

Retail Banking in the USA

  • Key Banks: Bank of America, JPMorgan Chase, Wells Fargo, Citibank.

  • Features:

    • Advanced online and mobile banking.

    • Wide ATM and branch network.

    • Credit history and FICO score-based loan systems.

  • Trend: High reliance on credit cards and digital payments; focus on cybersecurity.

Retail Banking in the UK

  • Key Banks: HSBC, Barclays, Lloyds, NatWest, Monzo (neo bank).

  • Features:

    • Strong adoption of digital and app-based banking.

    • Faster Payments Service (FPS) for real-time transfers.

    • Increasing use of open banking APIs.

  • Trend: Rise of fintech and challenger banks.

Retail Banking in Japan

  • Key Banks: Mitsubishi UFJ, Sumitomo Mitsui, Mizuho Bank.

  • Features:

    • High ATM usage, strong cash culture.

    • Aging population influences banking services.

    • Banking kiosks and post office banking are common.

  • Trend: Gradual digital adoption and fintech integration.

Retail Banking in Australia

  • Key Banks: Commonwealth Bank, ANZ, NAB, Westpac.

  • Features:

    • Modern mobile and internet banking platforms.

    • “Tap and go” card payments are common.

    • Emphasis on mortgage and investment products.

  • Trend: Open banking and consumer data rights gaining momentum.

Retail Banking in China

  • Key Banks: ICBC, Bank of China, China Construction Bank.

  • Features:

    • Digital-first banking with dominant apps (WeChat Pay, Alipay).

    • Branch visits are decreasing.

    • Focus on savings and investment-linked services.

  • Trend: AI and big data used for personalized banking services.

Retail Banking in Pakistan

  • Key Banks: HBL, UBL, MCB, Meezan Bank (Islamic).

  • Features:

    • Growing use of mobile wallets (JazzCash, Easypaisa).

    • Demand for Islamic retail banking products.

    • Utility bill payments and remittance services are popular.

  • Trend: Expansion of branchless banking and digitization efforts.

Retail Banking in Canada

  • Key Banks: RBC, TD, BMO, Scotiabank, CIBC.

  • Features:

    • Advanced mobile banking and card services.

    • Chequing and savings accounts are widely used.

    • Mortgages and home equity lines of credit are popular.

  • Trend: Integration of AI for customer service and fraud detection.

Retail Banking in Singapore

  • Key Banks: DBS Bank, OCBC Bank, UOB.

  • Features:

    • Highly digitized and efficient banking system.

    • Popular digital services include PayNow, FAST transfers.

    • High wealth and investment banking demand.

  • Trend: Rise of digital-only banks and robo-advisors.

Retail Banking in Malaysia

  • Key Banks: Maybank, CIMB, RHB, Public Bank.

  • Features:

    • Mix of conventional and Islamic banking.

    • Growing digital banking services (DuitNow, mobile apps).

    • Loans, cards, and savings schemes widely used.

  • Trend: Digital-first approach and fintech collaborations.

Retail Banking in Dubai (UAE)

  • Key Banks: Emirates NBD, Dubai Islamic Bank, Mashreq Bank.

  • Features:

    • Strong Islamic and conventional banking mix.

    • Luxury banking experience with wealth products.

    • Online account opening and 24/7 customer service.

  • Trend: Smart branches and AI-driven services are emerging.

Retail Banking in Saudi Arabia

  • Key Banks: Al Rajhi Bank, NCB (SNB), Riyad Bank.

  • Features:

    • Shariah-compliant retail banking dominates.

    • ATMs and mobile banking widely available.

    • Government salary deposits and personal finance are major services.

  • Trend: Rapid digitalization under Vision 2030 reforms.

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