Retail banking

What are retail banking services and products? 

Here’s a snapshot of what retail banks provide:

• Savings account: A financial product used primarily to accumulate money and safe keep emergency funds while earning a modest interest amount.
• Checking account: A transaction account that allows for deposits and withdrawals to pay bills and make purchases.
• Personal loan: An amount borrowed from a bank or credit union that’s paid back over a specific period, typically with an interest rate.
• Debit card: A bank-issued card to make purchases in place of cash or credit cards where funds are deducted directly from one’s checking account with each use.
• Credit card: A bank-issued card to make purchases against a revolving line of credit.
• Certificate of deposit (CD): A savings account that holds a fixed amount of funds for a set period with an interest rate that’s typically higher than a traditional savings account.
• Safe deposit boxes: A secured box in a bank vault for safe-keeping valuable assets like paperwork, collectibles, or heirlooms. 

The future of retail banking 

The only predictable thing about consumer trends is unpredictability. Consumer preferences in regard to finance will constantly shift, and expectations will only get higher. The share of unbanked households, or households without an account at an insured institution, steadily declined from 8.2% in 2011 to 5.4% in 2019. Meanwhile, McKinsey & Company reports that retail banks should focus on three consumer areas to improve customer experience: 

1. Daily banking
2. Navigating life events
3. Building and protecting wealth

Stay on top of trends and shifts and continue to optimize a great banking experience by staying connected to customers and their changing needs. 

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