Features of retail banking essay

In the present day situation when lending to corporate clients lead to credit risk and market risk, retail banking may eliminate market risk. Essay on Project on Retail Banking Essay on Project on Retail Banking Words Nov 10th, 30 Pages Show More 1 Introduction Retail banking is quite broad in nature - it refers to the dealing of commercial banks with individual customers, both on liabilities and assets sides of the balance sheet.

Retail banks use this information to track and monitor customer satisfaction, gauge the feasibility for new products and services, and to identify areas for improvement of the customer service experience inside of branches.

nature of retail banking

The money markets had lack of credit and due to its mortgage lending focus; it struggled a lot compared to its rivals. Effective customer relationship management with the retail customers built a strong base. That will accomplish…. Most consumers utilize local branch banking services, which provide onsite customer service for all of a retail customer's banking needs.

objectives of retail banking

Retail banking therefore has large customer-base and hence, large number of transactions with small values. This often includes broadcast television and radio advertising, print and magazine advertising, and public relations efforts to sponsor national and local events.

Teller cages are most often dedicated to walk-in consumer patrons. Housing loans are a characteristic of retail banking and as we can see, for Northern Rock, in the absence of proper follow up and non repayment, it was one of the first institutions to be struck by the severity of the crisis.

The UK government was utterly shocked by the Northern Rock collapse, mainly because it made them realize that many other UK banks had become over concentrated in real-estate related risk. However, it had been fishing from the same pool of funding and difficulty started in renewing the short-term funding when BNP Paribas, the French bank, announced that it was closing three investment vehicles that invested in the US sub-prime mortgage assets using short-term borrowed money Pond, The major policy issues relevant to retail banking are financial capability, consumer protection, regulation and responsible lending.

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Retail Banking Definition