Retail Bank

Retail banks serve the general public, usually through branches, cash machines, websites and mobile apps. Their focus is on everyday needs: keeping money safe, making payments, saving and borrowing.

Typical retail banking products include current accounts for day-to-day spending, savings accounts and fixed-term deposits, debit cards and credit cards, personal loans, car loans and mortgages. Many retail banks also offer insurance, investment products and financial advice.

For example, a customer might have their salary paid into a retail bank account, pay bills by direct debit, use a credit card for purchases and hold a mortgage with the same bank.

Retail banks earn money from the interest margin between loans and deposits and from fees. Because they serve large numbers of individual customers, they are subject to consumer protection rules, and retail deposits are often covered by deposit insurance schemes.

Note: Retail banking is the name for the business activity of serving individual consumers. A retail bank is an institution that focuses on it.