PRESENTATION ON RETAIL

BANKING
SUBMITTED TO- MS.ANJALI AHUJA
SUBMITTED BY-DIVYANSHU(49210122)
VANSHIKA(49210192)
 RETAIL BANKING
 RETAIL BANKING is banking that provides financial services to
individual consumers rather than corporations or other banks.

 It is also known as CONSUMER BANKING OR PERSONAL

BANKING.

 Retail banking is typical mass-market banking where individual

customers use local branches of larger commercial banks.

 It certainly helps retail customers conduct their daily financial

dealings more effectively and safely.

 RETAIL CUSTOMERS refers to individuals who are opening an

account for personal use rather than for a business or CA.

 EXAMPLE OF RETAIL BANKING- US Bank & Bank Of America.

 1) PERSONAL
LOANS
5) CERTIFICATE OF
DEPOSIT
(CD is a savings account
that holds a fixed amount
2) SAVING &
of money for a fixed
period of time & the SERVICES CHECKING
ACCOUNTS
issuing bank pays
interest.)
OFFERED BY
RETAIL BANKING
INCLUDE-

3) MORTGAGES
4) DEBIT OR
(Money that you
CREDIT CARDS
borrow in order to
buy a property)
 1) 24/7 customer 2) Reduced
access to their routine teller
accounts via the visits & calls to

FEATUR
Internet. the branch.

ES 3) Automated 4) Automated

OF customer service
requests with
secure e-mail.
new account
qualification &
application

RETAIL process.

BANKIN 6) Pay bills ,

order checks
5) Transfer funds

G between
accounts.
& initiate
stop-
payments.
FORMS OF RETAIL
BANKING
1) COMMERCIAL BANKS
 They accept savings and current deposits; and grant personal loans to the customers in the
form of housing loans, education loans, consumer loans, travel loans, credit card loans, car
loans etc.

2) COMMUNITY DEVELOPMENT CORPORATION

 A Community Development Corporation in Retail Banking is a specialized financial institution
or entity focused on promoting Economic Development & Financial Services within a specific
community or region.
 These organizations typically work to address the financial needs of underserved or low-
income communities including savings accounts, loans and financial education.
3) PRIVATE BANKS
 Private Banks in retail banking offer personalized financial services to individual customers.
 Private sector banks are those banks in which majority of stake are hold by private individuals
and not by the government.
 Maximizing the profit is their basic motto & also contributed towards the growth of the
economy.
 Some of the most popular banks are- Axis Bank , HDFC Bank, ICICI Bank, Kotak Mahindra
Bank etc.

4) SAVINGS BANKS
 Savings Banks are financial institution that gathers savings and pays interest or dividends to
servers.
 It channels the savings of individuals who wish to consume less than their incomes to
borrowers who wish to spend more.
 This function is performed by mutual savings banks, savings and loan associations, credit
unions and municipal savings banks.
 TYPES OF RETAIL BANKING PRODUCTS

1) DEPOSIT 2) LOAN 3)
PRODUCTS INVESTMENT
PRODUCTS RPODUCTS

 Savings Accounts  Housing Loans  Insurance Products

 No-Frills Accounts  Personal Loans  Mutual Funds
 Current Accounts  Education Loans  NRI Services etc.
 Fixed Deposits/Term Deposits  Loans to senior citizens
 Recurring Deposits  Credit Cards
 Gold loans
 Vehicle Loans
 Agricultural Loans
 2) MUTUAL FUNDS
1) INSURANCE PRODUCTS
Mutual funds are investment
Insurance is a way to manage your
vehicles that pool money from
risk. When you buy insurance ,you
multiple investors to purchase a
purchase protection against
diversified portfolio of stocks,
unexpected financial losses.
bonds or other securities . They are
Some insurance products are-Health
managed by professional fund
Insurance, Home Insurance, Life
managers who make investment
Insurance, Motor Insurance etc.
decisions on behalf of the investors.

INVESTMEN
T
PRODUCTS
3) NRI SERVICES
An NRI account is a Non-Resident Indian
Account opened with banks or other
financial institutions . NRIs may open NRI
accounts to deposit their income which
may originate from India or from any other
country.
 RETAIL ASSETS
1) HOUSING 9) PERSONAL
LOANS LOANS

2) EDUCATION
LOANS 8) GOLD
LOANS
3) LOANS TO
SENIOR 7) PROPERTY
CITIZENS & MORTGAGE
LOANS
4) VEHICLE 6)
LOANS AGRICULTUR
AL LOANS
5) CREDIT
CARDS
  HOUSING LOANS RETAIL ASSETS  PROPERTY & MORTGAGE
LOANS
 The purpose of housing
 VEHICLE LOANS A mortgage loan is offered on
loan is to provide the
This loan can be commercial mortgage property which can
funds which home
or personal. Vehicle loan range from personal property to
buyers need to purchase
depends on the individual’s commercial properties. Properties
their homes.
creditworthiness. are kept under mortgage as a
security for paying off a loan.
 EDUCATION LOANS
An education loan is a sum of  CREDIT CARD
money borrowed to finance Credit card is a type of credit  GOLD LOANS
post-secondary education or facility, provided by banks that It is a loan which is granted
higher education related allow customers to borrow against a certain physical
expenses. funds within a pre-approved security of gold.
credit limit.

 LOANS TO SENIOR CITIZENS  AGRICULTURAL LOANS

The banks provide Farmers may apply for loans to  PERSONAL LOANS
comprehensive & customized buy inputs for the cultivation of Personal loan is taken to fulfill
personal loans for senior food grain crops & the purchase personal needs of a person &
citizens to fulfill their various of agricultural land may also be tenure ranges from 5 to 7
expenses sech as medical financed through special types years . These loan carry high
expenses, paying old age home of agricultural finance. interest rates
fee etc.
RETAIL LIABILITIES
• SAVINGS BANK ACCOUNT

• TIME DEPOSITS ACCOUNT

• NO FRILL ACCOUNTS

• RECURRING DEPOSIT ACCOUNT

• CURRENT ACCOUNT
 RETAIL LIABILITIES
1) SAVINGS BANK ACCOUNT
 It is an account provided by a bank for individuals to save money & earn interest on the cash held in the account.
 A savings account can be used to save money for specific expenses or for longer-term undefined goals, all while earning
interest on the money in the account.
 The rate of interest is generally low. This type of deposit account encourages small savings in the country.
 FOR EXAMPLE, he can withdraw only a specified sum of money in a week. Of course , the depositors are given cheque
facility
to withdraw money from this account.
 EXAMPLE OF BANKS- Kotak Mahindra Bank, IDFC First Bank etc.
2) TIME DEPOSITS ACCOUNT
 Time deposits are deposits accepted by banks for a specified period of time. The banks generally do not accept deposits for
periods longer than 10 years.
 Banks pay interest on term deposits based on the period of deposits & normally pay higher interest for longer-term deposits.
 Banks have full discretion to fix their interest rates on deposits & these rates are varied from time to time depending on market
conditions.
 Changes made in interest rates from time to time do not alter the interest paid on the existing deposits.
 EXAMPLE OF BANKS- SBI, Canara Bank.
3) NO FRILLS ACCOUNT
 An account with zero or minimum balance with maximum balance of RS 50,000 at any given point in time & total credit in
a year not exceeding RS 1,00,000.
 FRILLS means “services”.
 EXAMPLE OF BANK- ICICI Bank.
4) RECURRING DEPOSIT ACCOUNT
 Recurring deposit account is generally opened for a purpose to be served at a future date like wedding expenses of
daughter, purchase of costly items like land, luxury car, air- conditioner etc.
 It is opened by those who want to save regularly for a certain period of time & earn a higher interest rate.
 In this account certain fixed amount is accepted every month for a specified period & the total amount is repaid with
interest at the end of the particular fixed period.
 EXAMPLES OF BANKS- Yes Bank, United Bank etc.
5) CURRENT ACCOUNT
 The bank grants no interest on this account because it has to keep the cash ready at all times to meet the requirements of the
depositor & can withdraw money whenever he requires it.
 This account is generally opened by businessmen who may have to withdraw money several times a day.
 The debtor (bank) has to pay off the debt on demand either to the depositor himself or to anyone else whom he authorizes by
writing a cheque. It is a liability for the bank but an asset for a depositor.
 EXAMPLES OF BANKS- Axis Bank ,HDFC Bank, Kotak Mahindra Bank etc.
 ADVANTAGES OF RETAIL BANKING
1) ACCESSIBILITY- It provides easy access to basic banking services, making it convenient for individuals to
manage their finances.

2) ECONOMIC GROWTH- Retail banking plays a crucial role in stimulating economic growth by providing loans
to businesses & individuals for investment & consumption.

3) COMMUNITY ENGAGEMENT- Retail banks often engage with the local community through initiatives such
as sponsorships, charity programs & support for local businesses.

4) CONVENIENCE- ATMs, online banking, and mobile apps make it convenient for customers to conduct
transactions & access their accounts 24/7.

5) CREDIT ACCESS- Retail banks offer credit products like credit cards, personal loans, & mortgages, which can
help individuals finance major expenses.

6) FINANCIAL EDUCATION- Many retail banks offer resources & advice to help customers make informed
financial decisions.

7) SAVINGS & INVESTMENT- Customers can use retail banking services to save money, invest in various
financial products, and plan for their future.
 CHALLENGES OF RETAIL BANKING
1) DIGITAL TRANSFORMATION- Keeping up with rapidly evolving technology & consumer expectations for
digital banking service can be a challenge.

2) COMPETITION- Fierce competition from traditional banks, fintech startups, & big tech companies can make it
challenging to retain & attract customers.

3) CYBERSECURITY- Protecting customer data from cyber threats is a top priority due to the increasing
frequency & sophistication of cyberattacks.

4) ECONOMIC FACTORS- Economic downturns and financial crisis can affect loan quality & profitability.

5) DATA MANAGEMENT- Handling and leveraging vast amounts of customer data for insights while respecting
privacy regulations is a delicate balancing act.

6) BRANCH NETWORK- Managing physical branch networks amid shifting customer preferences for online
banking can be costly.
 3)
TECHNOLOGIC
AL
ADVANCEMEN
4) LOWER
FACTORS
T
NPAs

2) CHANGING
CONTIBUTING
DEMOGRAPHI
CS TO THE
5) LIQUIDITY IN
THE BANKING GROWTH IN
SYSTEM

1) ECONOMIC
RETAIL
PROSPERITY
BANKING
1) ECONOMIC PROSPERITY- Since 1992, the economy has been growing at a compounded annual growth rate
of 6.8%. Economic Prosperity has led to an increase in the purchasing power of the consumers.

2) CHANGING DEMOGRAPHICS- Changing Demographics has also contributed to the growth o retail banking.
The Indian Population is, to a large extent, young & young people are generally ready to take risks.

3) TECHNOLOGICAL ADVANCEMENT- Technological advancements in the distribution of banking services

have revolutionized the way banking is done. They have brought in comforts like phone banking, ATMs,
Credit/Debit cards & more recently Internet Banking. Technology has helped in saving a lot of time for the
employees which they can use to focus on attending to the consumers.

4) LOWER NPAs- NPA refers to non-performing assets. NPAs & Impaired Assets are relatively lower in retail
banking & this factor is attracting more players to retail banking. FOR EXMAPLE, Deutsche Bank, a leading
investment banker, entered the retail segment in 2006.

5) LIQUIDITY IN THE BANKING SYSTEM- Liquidity in the banking system increase with more inflow of
funds through deposit mobilization; flow of foreign investments such as Cash Reserve Ratio(CRR), Statutory
Liquidity Ratio(SLR). More liquidity reduces the cost of funds, which in turn, reduces the interest rates.
 The conclusion of retail banking is that it remains a fundamental component of the financial
industry, providing essential services to individuals and small businesses.
 While it has faced disruptions from digital technologies & online banking, the physical
branch network still plays a crucial role in customer service.
 Retail banks continue to evolve by offering online & mobile banking options, personalized
financial services, and innovative products to meet changing customer needs.
 The future of retail banking is likely to be characterized by a blend of digital convenience &
personalized in-person interactions, adapting to the evolving financial landscape.
www.investopedia.com
www.theforage.com
www.tppl.org.in
THANKYOU!
SHORT –QUESTIONS
Q-1 What is retail banking?
Q-2 What are the various types of retail banking products?
Q-3 Features & Services of retail banking?
Q-4 Write a short note on NO FRILLS ACCOUNT.
Q-5 Write a short note on Direct Benefit Transfer.

LONG QUESTIONS
Q-1 What is retail banking? Explain in brief along with retail assets and retail
labilities.
Q-2 What are various forms of retail banking? Explain the challenges and
advantages of retail banking.
Q-3 Explain in detail TYPES OF BANKS.
Q-4 Difference between retail assets and retail liabilities.