 Example Of Retail Banking:

Retail banking encompasses the services offered to consumers by commercial

banks. The term “Retail” refers to the almost storefront-shopping nature of
commercial banking services.

Most commercial banks have extensive retail banking services and products to
reach a wide consumer base.

 Here is a brief story about Ram’s day at his bank XYZ. He arrives at the bank
one day to deposit Rs. 20000 cheque into his account. He decides to deposit
Rs. 10000 of the cheque into his existing account. The other Rs. 10000 he
decides to use to open a savings account. Ram sits with a bank representative
who explains the various savings account options and helps him with opening an
account once he’s made a decision
 Additionally, the account representative informs Ram of retirement plans the
bank offers as well as educational savings plans for his children. Before he
leaves, Ram also takes information on auto loans offered by the bank since he is
considering purchasing a new car. While at the bank, Ram was able, in one
place, to deposit money, open a savings account and find information relating to
banking products he may need in future.

 Why it matters:
Retail banking is a framework that allows commercial banks to offer banking
products and services in one place at virtually any of their branch locations. The
retail banking aspects turns commercial banks into a kind of “Store” (or retailer)
where clients are able to purchase multiple banking products.