2. “Retail banking is typically mass – market banking
where individual customers use local branches of
larger commercial banks. Services offered include
savings and transactional accounts, mortgages,
personal loans, debit cards, credit cards and so”.
3. Retail banks provide banking services to individuals and small
Retail banks deals with individual customers, both on liabilities and
assets sides of the balance sheet.
Fixed/current/saving accounts on the liabilities side, and mortgages
loans on asset side.
Financial institutions are dealing with large number of low value
It is typically mass-market banking.
4. Multiple Products
The products included in retail banking
Various types of deposits/accounts.
Credit and debit cards
Loans (Personal, Auto, Housing etc.)
Insurance, mutual funds etc.
Multiple channels of distribution
Multiple Customer Groups
Small and Medium Enterprises (SMEs)
5. Omni-channel Banking will allow for seamless
integration and a consistently pleasurable customer
experience across all channels- ATMs, Internet
Banking, Kiosk, branches,
Mobile....You name it.
8. Your money is much more secure than in a box
under your bed and you can buy goods, be paid,
and sell things without cash changing hands.
The bank you are familiar with and which knows
you can also offer you a wide range of other
services, such as mortgages and insurance. Your
bank may be able to offer you competitive deals in
return for your loyalty as a customer.
Retail banks offer a variety of ways you can access
your account and manage your money, most
notably via internet banking. This means that you
can keep a close eye on your finances and avert
many potential problems.
9. 1. All round increase in economic activity.
2. Increase in the purchasing power. The rural areas have the large
purchasing power at their disposal and this is an opportunity to market
3. India has 200 million households and 400 million middleclass
population more than 90% of the savings come from the house hold
sector. Falling interest rates have resulted in a shift. “Now People Want
To Save Less And Spend More.”
4. Nuclear family concept is gaining much importance which may lead
to large savings, large number of banking services to be provided are
5. Tax benefits are available, for example, in case of housing loans the
borrower can avail tax benefits for the loan repayment and the interest
charged for the loan.
13. Future of Retail Banking is for the
Pricing is determined by Customer.
Competition among Banks would ensure him
better service at cheaper rate.
Customer would be able to discount his future
earnings as Retail Credit for his higher standard