Retail Banking, also known as consumer banking, is the service provision by a bank to individual customers, rather than to corporations, other banks or companies. Services offered are saving and transactional accounts, personal loans, credit cards, mortgages, and debit cards. The term is generally used to differentiate these banking services from commercial banking, investment banking or wholesale banking. Also, the term may be used to refer to a department or division of a bank that deals with retail customers.
Most consumers use local branch banking services, which offer onsite customer service that satisfy the banking needs of retail customers. Though local branch sites, financial representatives offer financial service and customer advice. Moreover, financial representatives are the lead contact for underwriting
To their products offering, retail banks provide a wider range of services for their retail consumers. In addition to basic customer service and retail banking accounts, banks are adding financial advisors with extended product offerings. For instance, some retail banks are offering investment services such as brokerage accounts, wealth management, retirement planning and private banking.
Fintech and retail banks have complementary strengths which should be leveraged to make a better central financial experience for customers. Banks offer capital and deep customer bases while fintech excel in innovation, agility and exploiting new technology.
Fintech firms are sprouting all over the world and they have come up with Robo-advisers, online wealth advisors, mobile banking, improved and fast payments , easy and inexpensive transfer of money.