Many people know that the best way to secure their money is by having a bank. Having your own bank can offer safety and security when you are handling your money on a regular basis. A bank provides a safe place for your money to be deposited and accessed. In addition, banks provide a number of financial services such as bill payment, checking account, loans, and savings accounts. The role in the development of these services may vary from one bank to another.
Retail banking, also called individual banking or consumer banking, is basically banking which offers financial services to private consumers rather than large companies. Many banks offer retail banking services online banking over the internet, providing the option for online shopping and transactions. Retail banks offer an assortment of financial services such as bill payment, loans, and savings accounts. While these kinds of services are offered by a few traditional banks, many newer banks offer these services via the internet. This type of internet banking allows customers the ability to access and complete these financial services right from their computer.
Banks that provide individual consumer banking tend to focus more on direct personal transactions and money transfers. Some examples of these types of services are checking accounts, loans, and savings accounts. Many banks offer Internet accounts that allow individuals to deposit and transfer money directly from their computers to other online accounts. This has a number of benefits such as privacy, convenience, and security. Internet financial services provided through a computer terminal provide security and convenience that previous methods do not offer.
Corporate banks often provide corporate finance, merchant banking, commercial banking, and money market investment banking. The roles these banks play in the community and the role they play in assisting businesses and individuals are essential parts of the banking services they provide. Corporate banks can also serve as financial advocates and negotiators between groups of individuals and companies looking to obtain money through different lending sources.
Another kind of financial service provided through local branch banking services is retail lending. This service involves lending money to consumers in the form of checking, savings, certificates of deposit, or even in the form of credit cards. Often, these loans are provided at local retail outlets located in communities, such as malls, schools, churches, and town centers. Such lending is often supported by the federal government through the Small Business Administration and state and local governments through similar programs.
Community banks also provide various types of retail banking. These banks offer a range of financial products such as loans, savings accounts, checking, money markets, and short-term investments. Many community banks offer Internet access, which allows customers to perform their banking transactions from anywhere in the world. Customers may also choose to have an account with the local community banks. In some cases, local banks will also allow customers to open a second account through a bank on the same premises as the original bank account.
Corporate banks play an important role in providing retail banking services. These corporate banks are usually international banks, which usually have branches all over the country. They serve as financial advocates for corporations as well as individuals looking to borrow or receive loans. Such corporate banks may also act as suppliers for certain services and goods that the original lender may be able to provide. There are many other kinds of retail lending, which are provided by a variety of corporate banks. Some of these include commercial lending, industrial lending, residential lending, corporate finance, and offshore lending.
An example of a retail bank is a credit union. Credit unions are often seen as an alternative to banks and other lending sources. A credit union is a more affordable option because members are typically required to pay a lower annual fee. Because members generally pay reasonable fees, the amount they can borrow from the institution is generally restricted. If a member should choose to go out of their means and not pay back the loan, the credit union has the authority to sell the loan to another retail lender at a higher interest rate than they would have charged to the retail customer.