Retail Banking
Retail banking provides financial services directly to individual consumers and households.
Meaning in Practice
Retail banking includes deposit accounts, mortgages, personal loans, and payment services. It focuses on high-volume, standardized products for individuals. Retail deposits are generally considered a stable funding source.
Why It Matters
Retail banking supports household consumption, savings, and credit access. Stable retail funding enhances bank resilience. It forms the backbone of many traditional banking models.
Market Impact
Strong retail banking performance supports earnings stability and predictable funding costs. Economic downturns may increase consumer credit risk. Shifts in household savings behavior influence deposit flows.
Example
A bank offers savings accounts and personal loans to households while providing digital payment services.