Investment banks and Retail banks are the two main sections of the banking industry. They perform different tasks, serve diverse clients, and provide various services. Retail banking offers banking services and loans to customers and small companies.
On the other hand, investment banks manage capital expansion for institutional clients that partake in capital markets and firms that seek financing and give consulting services to them. There are only a few branches for investment banks, but there are many for retail banks.
In that case, getting into retail banking is a great option. If you want to join the retail banking sector, you can get in touch with the Institute of Professional Banking (IPB). They are known for helping the aspirants to make their way to the bankers.
Retail Banking
Retail banking offers banking services, such as accepting deposits, checking account services, and providing loans to individual customers. You can also receive services, such as safe deposit boxes and automatic payment services which are referred to as personal, consumer banking, or retail banking.
Customers are generally served in the local market through a branch or automated teller, and typical clients are individuals, families, and small firms. Depository activities contain savings accounts, reviewing accounts, and certificates of deposit (CDs). Lending concentrates on home mortgages, vehicle loans, personal credit, and other financing for large consumer investments.
Retail banks make a profit by the imposition of fees (for credit and debit cards, checking accounts, and other services). Other than that, they earn from the interest income from client loans. For retail banks, the key execution generally retains deposit development and the area of geographic range. They use technology to grow their customer base.
With the help of the PGCRB course of IPB, you can get into retail banks with ease. This program conveys real experiences of working, processes, and systems of the banking sector. You must indulge in this 90-day course to have a better understanding of the banking sector.
Investment Banks
Investment banking is a subcategory of corporate or commercial banking that concerns institutional clients instead of people. They assist corporate and institutional commodities’ capital market requirements and also provide advisory assistance.
Whenever a firm needs to attract additional capital via debt or equity allocation, investment banks help the security given on behalf of the organization that is seeking the capital.
Mostly, investment banks make money via fee income arranged as part of a capital markets trade. The main growth of investment banks is their presence and standing in the capital markets, market competitors for fee income, and transaction frequency, size, and scale.
Difference Between Investment Banking And Retail Banking
Both the investment and retail banks offer their own set of benefits to the clients. They are essential for the proper working of the economic system of a country. Below we will discuss the major differences to provide you with a better insight into them.
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Investment Bank |
Retail Bank |
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Aim |
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Investment banks help larger organizations to expand capital and advise them about funding. |
Retail banks encourage the daily and routine dealings of the general people. |
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Network of Branches |
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There are fewer investment banking branches available locally. |
There are many retail banking branches accessible regionally. |
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Scope |
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Investment banks deal with managing and supervising dealings of somewhat larger financial value. |
Retail banking looks after transactions of somewhat smaller financial value. |
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Services |
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| Investment banks provide services such as debt security, merger, underwriting, acquisitions, etc. |
Retail banking offers services such as loans, individual bank accounts, depositing and withdrawing money, Debit/Credit/ATM cards, etc. |
What’s Best For You?
Both banking careers have their own set of pros. Typically, investment bankings help you raise your money with the help of selling securities (like stocks and bonds). It serves as a link between large firms and investors.
When it comes to Retail banking, individuals get a lot of opportunities that help them grow in their careers. Great pay and other significant perks, such as healthcare and retirement possibilities, make it a great option to choose as a career. Another benefit is that many retail banking branches are easily accessible.
Wrapping Up
Hope you have got a better clue about investment and retail banking. Think retail banking is a career choice for you? Get along with the team of IPB and join the PGCRB course to learn about Retail Banking in detail.
