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Retail banking, also known as personal banking or consumer banking, isfinancial servicesaimed at individual customers and not at large companies. Retail banks offer products such as savings accounts and debit cards to the public, and working at retail banks requires a high level of customer service.
In this manual we discuss:
- Definition of retail banking
- Retail banks vs. other types of banks
- Types of Jobs in Retail Banking
- This is how you end up at Retail Banking
Definition of retail banking
Retail banks provide products and services to individuals, families and small businesses rather than corporations, public organizations or other banks. Some banks are exclusively retail or consumer-oriented, meaning they do not have branches or departments that specialize in commercial or commercial mattersInvestment bankServices.
Other retail banks are branches of larger banks. For example, Bank of America has consumer (retail), investment andcommercial bankingactivities. Its consumer or retail banking functions include offering mortgages, personal loans and credit cards to individuals, as well as ATMs around the world.
Retail banking is truly a community effort: the money you deposit in a bank funds loans and mortgages for other customers. The interest on these loans is how retail banks make money. except thatFederal Deposit Insurance Agency (FDIC)insures bank deposits. So if you go to the bank to withdraw your deposits and the bank doesn't have the money, you have insurance that will (usually) ensure that you don't lose your money.
Products and services available at most retail banks include:
- Auditing of accounts
- Savings account
- Debit card
- Credit card
- ATMs
- Mortgage loans
- Personal loans
Citi Consumer Banking
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Retail banks vs. other types of banks
The main differences between retail banks and other types of financial institutions are who the consumers are and what products and services are offered.
Commercial or business banksis mainly intended for companies. These banks offer similar products to retail banks, such as deposit accounts and loans. However, commercial banking also includes broader credit services, merchant services (such as processing credit card transactions), and international trade and trade support. Learn more about working at a commercial bank withJPMorgan's Commercial Banking trajectory simulation.
The investment bankoffer various services to companies, businesses and governments. For example, an investment bank can help clients raise capital by arranging or issuing debt securitiesmergers and acquisitionsand manage assets for clients, such as investment portfolios. Explore a career in investment banking atBank of America Investment Banking banensimulatie.
Credit unionsare member-owned financial institutions that serve a community of members and owners who all vote to elect boards of directors. Credit unions offer similar services to retail banks, except that the services are available only to members and credit unions are not-for-profit: credit unions reinvest most of their income in products and members.
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Types of Jobs in Retail Banking
Teller
Bank tellers, also called tellers, help customers with everyday banking matters, such as making deposits, cashing checks and withdrawing money. A bank employee needs excellent customer service skills to effectively answer customer queries and handle concerns and complaints effectively.
“In retail banking, associates often start as teller or customer service representatives and gradually move into branch management or financial consulting at New York University, professor of economics and Shileskov, Dennis City and New York University, growth manager at Markise.” Strong performers can eventually become regional or district managers who oversee multiple locations."
Department manager
Branch managers are responsible for one store branch or office. In many ways, a branch manager becomes the face of the bank to the community, overseeing daily operations and fostering relationships between the bank and its customers. A branch manager also hires employees and ensures that the location meets sales and revenue goals.
Accountant
Accountantsin retail banking, checks the bank's financial records and records to ensure that the information is accurate and that the bank complies with local, state, and federal laws and regulations. Many bank accountants are certified bank accountants, or CBAs, who have received certification from the Bank Administration Institute. However, some accountants arecertified accountants(CPAs) who specialize in assessing banks.
Credit manager
Loan officers work with customers to apply for loans. Many loan officers help individuals and small businesses secure financing through personal and small business loans. However, some credit advisors specialize in mortgage loans, which are particularly complex. To facilitate mortgage lending, loan officers must be licensed as mortgage loan originators (MLOs).
Insurers
Underwriters can be loan officers themselves or work with loan officers. The purpose of an underwriter is to assess creditworthiness and determine whether customers qualify for loans and mortgages. An underwriter is responsible for verifying customers' financial information and measuring the risk associated with offering a loan. Underwriters can specialize in specific types of loans. For example,mortgage credit institutionsfocus on assessment and assessment of mortgage loan applications.
Personal banker
A personal banker helps customers open new accounts and maintain existing accounts. Some personal bankers may be financial or personal finance advisors, meaning they are skilled at guiding clients through complex situations, such as taxes and mortgages. Personal financial advisors also help consumers achieve goals by setting budgets and planning retirement funds.
Standard bank retail banking
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This is how you end up at Retail Banking
Education
Some retail banking positions, such as tellers, may only require a high school diploma. However, most positions require at least a bachelor's degree in finance,financial accounting, ofeconomy. A degree in finance gives you the foundation in the mathematics necessary to perform the day-to-day tasks of banking, but also allows you to better understand how retail banking functions as part of the local, national and global economy. Bank managers, accountants, loan officers and personal bankers especially benefit from financial and economic training.
Some retail bankers may even pursue a master's degree or PhD to make themselves more marketable and increase their knowledge of finance and economics.
Shirshikov recommends that students “gain real-world experience through internships or entry-level positions in the banking industry.” Moreover, Shirshikov continues to say sonetworkand by finding mentors in the industry, students can “learn about opportunities and stay current on industry trends.”
Certifications and registrations
Certain retail bank positions may require or benefit from certifications, licenses, or registrations, such as:
- Financial advisorsYou may need to be qualified and registered viaFinancial Industry Regulatory Authority (FINRA)if they offer investment advice or sell investment options, such as shares or bonds. Additionally, financial advisors can improve their skills and marketability with a Certified Financial Planner (CFP) certification.
- Loan Officersthose who specialize in mortgage lending must be licensed through their state and the National Mortgage Licensing System.
- Personal bankerscan become Certified Personal Bankers through FINRA or obtain a Personal Banker CertificateAmerican Bankers Association (ABA).
- Insurershave certification options depending on the type of loans they make. Mortgage lenders can, for example, be certified viaNational Association of Mortgage Underwriters (NAMU).
- Accountantscan become a certified bank accountant by meeting education and experience requirements and passing an examBank Administration Institute (BAI).
Skills
Regardless of their role, retail banking employees need strong customer serviceannouncementskills to adequately serve their customers and communities. Other skills required for all retail banking careers include:
- Problem solving ability
- Think analytically
- Mathematical skills
- Leadership and management skills
- Teamwork andCooperation
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Written by
McKayla Girardin →
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Read more from McKayla Girardin
McKayla Girardin is a New York-based writer at Forage. She has experience turning complex concepts into digestible articles to help everyone better understand the world we live in.
