Retail Banking Concepts and Models | Applicability of Retail Banking Concepts and Distinction between Retail and Corporate| Wholesale Banking | PAPER IV – RETAIL BANKING & WEALTH MANAGEMENT | Module A: Retail Banking
Retail Banking Concepts and Models Retail Banking: Role, Models & Comparisons Description Retail Banking focuses on individual customers and provides banking services such as savings, loans, credit cards, and mortgages. It plays a significant role in overall bank operations by generating stable revenue, diversifying risk, and expanding customer base. This note covers retail banking's function, business models, and distinction from corporate/wholesale banking. 1. Role of Retail Banking in Bank Operations Major contributor to bank’s income through interest and service charges. Enhances customer reach and base via branches, ATMs, and digital platforms. Helps in diversifying credit risk by offering loans to a large number of small borrowers. Acts as a stable source of deposits through savings and term deposits. 2. Retail Banking Business Models Branch-based Model: Physical presence i...