What is the essence of retail banking?

The essence of retail banking lies in its primary focus on offering financial services to individual consumers rather than corporations or specialized banking activities. Retail banking involves a wide range of services tailored for personal finance, including savings accounts, checking accounts, personal loans, credit cards, and other financial products that cater directly to the needs of everyday customers. This type of banking aims to enhance financial accessibility for individuals, helping them manage their personal finances, save for goals, and obtain credit.

In contrast, providing services to corporations emphasizes the relationship and offerings typical of commercial or corporate banking, where the services cater to businesses rather than individual clients. Engaging in investment banking activities involves transactions such as underwriting, mergers, and acquisitions, which do not align with retail banking's direct consumer focus. While mortgages and credit analysis are components of retail banking, a narrow focus on these areas would overlook the broader range of personal financial services that define retail banking as a whole. Thus, the emphasis on serving the individual consumer encapsulates the fundamental purpose and nature of retail banking.