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Capital Markets Outlook: 10 Challenges

in an Evolving LandscapeEconomic turmoil, regulatory reaction and technological advancesare bringing rapid change to the capital markets sector, makingthis an especially challenging time for capital markets firms aroundthe world. We expect the remainder of 2013 to be a year ofadaptation to a rapidly evolving capital markets landscape, saysBob Contri, vice chairman, U.S. Financial Services leader andU.S. Banking and Securities leader at Deloitte LLP.

Indeed, capital markets firms are expected to be challenged toredesign their industry and themselves, according toDeloittes2013 Capital Markets Outlook,as the industry faces overcapacity,thin profit margins and a damaged reputation that has garneredregulators attention and made it difficult to attract leading talent.The report, issued by the Deloitte Center for Financial Services,identifies important macro issues expected to affect the capitalmarkets industry this year and emerging developments likely to

drive significant changes in the capital markets sector. The macroissues include:

The demise of proprietary trading.As a result of the Dodd-Frank Acts Volcker Rule, firms that once generated substantialincome by trading for their own account can no longer count onthis activity for much, if any, revenue. To offset this loss of income,firms are considering new business models that focus onopportunities in wealth management, emerging markets and other

areas that offer growth potential.

Taming derivatives.As unregulated derivatives trades begin tomigrate to over-the-counter exchanges offering greatertransparency, profit margins are likely to shrink and capital

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markets firms will likely need to look elsewhere for new revenuesto make up for these diminished returns.

High-powered electronic trading.As more hedge funds,

institutional investors and high-frequency traders rely on their ownquantitative specialists to help set strategy, it is to be seenwhether the traditional research-and-service brokerage model gothe way of paper confirmations.

Regulatory overhang.In many ways, the foundational issuechallenging the industry is the need for restructuring andrealignment so the industry can work toward compliance with theevolving regulatory landscape.

Four Transformational Challenges

The report also identifies and examines the implications of thefollowing major transformational challenges facing the capitalmarkets industry.

These transformational challenges have the potential tofundamentally alter the strategies, revenue model and structure ofindividual firms and the industry as a whole, says Jim Eckenrode,executive director of the Deloitte Center for Financial ServicesDeloitte Services LP.

Regulatory. The devil may be in the details, but the regulatorshave yet to provide them. Actions from regulators and legislatorshave the potential to force the separation of banking from capitalmarkets once again. These issues will likely resolve this year andcould accelerate restructuring of the industry in a once-in-a-lifetime

way. Capital markets firms that are part of larger bank holdingcompanies should look to accelerate planning for potentialindependence, Mr. Eckenrode says.

Meanwhile, the industry must wait for clarification on manyimportant issues in Dodd-Frank. In the U.S., continued uncertaintysurrounding the impacts of regulatory actions such as living wills

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and the Volcker Rule, combined with potential for actions relatedto high frequency trading and the shifting of derivatives processingto more transparent exchanges, leaves capital markets executiveswithout a solid foundation for decision-making.

This uncertainty is compounded for firms operating more globallybecause of uneven jurisdictional treatment of the industry. Theregulatory unevenness has the potential to incent firms to moveoperations to more accommodating jurisdictions. For example,there may be a migration of activity from some of the mosttraditional markets, including the New York and London markets,to markets in Asia and other regions.

Business Strategy. Momentum should continue to build aroundthe fundamental restructuring of specific capital markets firms andthe industry as a whole. This is an industry in transition. And itaffects all the participants in various ways, says Mr. Contri.

As deleveraging continues, firms are anticipated to make somesignificant decisions about which of their businesses to maintainand grow, and which may be candidates for divestiture. Thesedecisions are likely to result in the emergence of an industry where

firms choose to focus their energies at either end of the spectrum.Some can continue to push their advantage as global, full-servicefirms, while many others may need to rationalize their businessmodels to focus on specific institutional strengths, observes AdamSchneider, a principal with Deloitte Consulting LLP and chiefadvisor at the Deloitte Center for Financial Services.

Repairing the Reputation.In an age where the pace of businessis now measured in milliseconds, reputation matters, perhaps

more than ever. As capital markets firms look to reshape strategy,reallocate capital and return to growth, investments in oversight ofoperational processes, analysis of funding sources and de-riskingof the client base should receive attention in the coming year.Firms can focus on taking action to limit fraud and liquidity risk,each of which can lead to severe challenges, Mr. Schneider says.

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Market Structure. The fundamental business model for sales andtrading will need to change as capital markets firms transition fromthe more traditional high-touch trading to much leaner electronicplatforms. Deregulation and the need for differentiation have

driven the development of alternative exchanges and darkpoolsalternative trading systems that do not display pricequotations to the publicas well as the rise of new tradingstrategies. For example, capital markets firms are creating theirown central limit-order books. Firms can then attempt to matchbuyers and sellers from their own order flows, or from order flowsof other privately managed dark pools before going throughexchanges, where spreads are narrower.

Firms can address the challenges of fragmentation caused by thedevelopment of alternative exchanges and dark pools by reducingthe complexity of their own environments. In many cases, thereare multiple instances of software that are in different versionsbased on geographic region or product. Combining the newcompliance reporting mandates with the fragmentation issue, firmscan focus on efforts to reduce and simplify their legacy back-endtrading platforms.

Six Transitional Challenges

The cyclical dynamics and evolutionary global trends aroundwealth and populations have led to the following six transitionalissues and challenges for the capital markets industry, which arediscussed further in the report:

Transparency vs. Margin. Dodd-Frank is driving a level oftransparency in derivatives trading and that is changing the way

securities are cleared, says Eckenrode. The creation of morestandardized and shared utilities for initiation, clearing andsettlement of trades will not be the responsibility of a single firm.Indeed, some larger firms will try to corral trading volume in orderto lower their costs. But for the industry as a whole, theestablishment of these utilities could be a major contributor to the

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creation of a smaller, but more profitable industry, Mr. Schneiderobserves.

Wealth Management Growth. The challenge for capital markets

firms as they shift from margin-based alpha businesses to amore fee-based income stream is how to get leverage acrossthese businesses. As in previous crises, capital markets firmexecutives should decide whether these shifts are merely cyclicalin nature or part of a more fundamental realignment of industryrevenue potential.

Globalization Opportunities. With stagnation in the developedmarkets of the U.S. and Europe, many global firms are looking to

emerging markets for growth. Firms should first consider theiroverall strategy and competitive strengths as they chase revenuearound the globe.

Tying the Operating Model to Electronic Trading.The growthof electronic trading has not been accompanied by a change in thebusiness model. Most firms still maintain a more expensive, salesand research-based model for their trading businesses alongsidenewer technology-based trading platforms. Regulations

prescribing improved trade monitoring and clients demand forbest execution at the lowest cost require ongoing and significantinvestment in information systems.

Innovation.Despite the public outcry against financialengineering, the reality is that innovation in product and processstill offers a way forward for capital markets firms. Extensiveproduct innovation will likely be more difficult in the short term asnew demands for transparency will take time to operationalize and

potentially reduce product margins. The focus on innovation mayshift, even if just temporarily, from product to process as theindustry adapts to a new regulatory environment.

Compensation and Talent. Increasing pressure to changecompensation models may contribute to an exodus of talent from

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traditional sell-side firms to other segments of the industry. Firmscan prepare for a more competitive talent market by positioningtheir corporate culture and compensation policies to ensure theenvironment and rewards they offer prospective employees are

commensurate, if not ahead of, those offered by other employersvying for the same talent.

A review of Indias financial market laws and

desired changes

Asuperb speechbu Anand Sinha, DG of RBI.

We follow developments and changes in financial markets very closely but hardly anyone

follows the changes in regulations that run financial markets. Law is as important in finance

as theories of finance.

So DG Sinha takes us through the myriad of rules and regulations in the banking system.

Moreover, he points to the recent amendments in the various financial sector laws. There

have been quite a few lately..

1. Reserve Bank of India Act, 1934 was amended in 2006 to provide legality to certain

OTC derivative transactions and also to give explicit regulatory powers to Reserve Bank over

derivatives and money market instruments.

2. The Banking Regulation Act, 1949 was amended in 2007 for removing the lower limit

prescribed in maintenance of Statutory Liquidity Ratio (SLR) by banks and conferring wide

powers on RBI in stipulating the SLR requirements for banks and to control liquidity in the

market.

3. The State Bank of India Act, 1955 was amended in 2007 for enabling transfer of ownership

from RBI to Government of India and again in 2010 to provide for enhancement of capital,

issue of preference shares, raise capital by public issue or preferential allotment or private

placement or rights issue; and to issue bonus shares to the existing shareholders, etc.

4. The State Bank of India (Subsidiary Banks) Act, 1959 was amended in 2007 to facilitate

enhancement of capital, raise resources from the market and raise capital through rights

issue.

5. The Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980

were amended in 2006to enable nationalised banks to issue preference shares in

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accordance with the guidelines framed by the Reserve Bank and to raise capital by

preferential allotment or private placement or public issue, with the approval of the

Reserve Bank.

6. The Negotiable Instruments Act, 1881 was amended in 2002 to introduce the concepts of

electronic cheque and cheque truncation by expanding the definition of cheque.

7. The Securities Contracts (Regulation) Amendment Act, 2007 was passed with a view to

providing a legal framework for enabling listing and trading of securitised debt

instruments, including mortgage backed debt.

8. The Government Securities Act, 2006 was enacted to consolidate and amend the laws

relating to Government securities and its management by the RBI. The Act simplifies the

procedure for settlement of claims of legal representatives, provides for admissibility of

computerised information as evidence, contains provisions for effectively dealing with

misuse of Subsidiary General Ledger (SGL) accounts and facilitates pledging and

hypothecation of Government securities.

9. The Payment and Settlement Systems Act, 2007 was enacted empowering the Reserve

Bank to regulate and supervise payment and settlement systems of the country and

provides a legal basis for multilateral netting and settlement finality.

10.The Prevention of Money- Laundering Act, 2002 was enacted as a follow up to UN General

Assembly resolution in 1998, calling for adoption of national anti-money laundering

legislations and programmes by member states. The Act provides for preventing money

laundering and connected activities, enables confiscation of proceeds of crime, setting up

of agencies and mechanisms for co-ordinating measures for combating money laundering,

etc.

11.The Foreign Contribution (Regulation) Act (FCRA), 2010 was enacted by repealing the

erstwhile Foreign Contribution Regulation Act, 1976 mainly to rectify several deficiencies

found in the previous Act. The new Act covers the electronic media and organizations,

other than political parties, apart from entities in the prohibited list in FCRA, 1976.

12.The Credit Information Companies (Regulation) Act, 2005 empowers the Reserve Bank to

regulate the Credit Information Companies (CIC) and to facilitate efficient distribution of

credit and matters concerned or incidental to it.

He points to some new reforms needed in the finreg space as well. RBI is looking at

additional powers in many areas like equity buying in banks, deposit collection activity by

coop banks, transparency and information sharing of subsidiaries of bank holding

companies, bank resolution, mergers etc.

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Superb preview on laws in Indian banking. In the end:

Financial sector is a very important segment of the economy and has direct bearing on

growth and prosperity. Strong financial systems need strong legal systems which provide

unambiguous and fair legislation. The financial system in India including banking, insurance,capital, taxation, etc. has many regulators, each having a separate mandate. This blend

raises pertinent concerns. First, financial system is still characterised by considerable

fragmentation of legislation, regulation and enforcement. Second, policy related frictions

might arise from the diversity of different legislations and the overlapping of the regulatory

jurisdictions. Third, there might be a risk of legal arbitrage among financial jurisdictions.

A need has been continuously felt to rewrite and streamline the financial sector laws, rules

and regulations and to bring them in harmony with the requirements of Indias fast growing

financial sector. The current legislations were drafted in the contemporaneous setting and

have had to be amended from time to time to incorporate changes in the milieu. Enacting

new law or amending old law is a continuous process to remain aligned to changing

circumstances. In the emerging scenario, the task of preventing financial risks has become

more important and challenging. Amid global economic worries, this is an enormous task

which, on completion, would immensely benefit the financial sector in India and economy at

large. A sound legal framework may help deter imprudent risk-taking by financial

institutions and reduce systemic risks. Revision of banking sector laws should also be

motivated by the recognition that the banking sector has been and remains a critical factor

not only for accelerating Indias growth but also for making it inclusive. Harmonising of

financial sector legislations, rules and regulations has, therefore, become imperative. I have

tried to give my views from regulatory and financial stability perspective. I hope you all will

benefit from todays discussions.

MEANING OF RETAIL

Retail means sale of goods in small quantities, it is concerned with buying of goods in smallquantities from the

wholesaler and selling them in small quantities to the ultimateconsumers as per their requirements. The person

engaged in this trade is called the retailer. Heacts as a link betweenthe wholesaler and the customers. In retail

trade goods are sold to the ultimateconsumers for personal use and for the use of the businessin small quantities

only. The retailer doesnot specialize in a particular line or a particular product. Rather he maintains a large variety

of goods. Generally, sales are limited to a local and on a small scale.

MEANING OF BANKING

Banking has come to occupy a pivotal position in a nations economy. According to the modernconcept, banking is

a business which not only deals with borrowings, lending and remittance of funds, but also an important instrument

for fostering economic growth.TheBanking Regulation Act 1949,defines the term banking as the accepting for

the purpose of lending or investment of deposits of money from the public or otherwise and withdrawable by

cheque, draft, order or otherwise. Thus, the essentials of banking are:(1) There should be acceptance of

deposited.(2) Deposits should be from the public.(3) Deposits should be repayable on demand or expiry of a term or

after a specified periods.(4) The purpose of deposits should be lending or investment.Bank is an institution which

deals in money and credit. It buys money from depositors and sellto the borrowers. It is body of persons whether

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incorporated or not who carry onthe business of banking. A bank may defined as a corporation or person

whichcollects deposits from the public, repayable on demand and which supplies and facilitates allkinds of

exchanges.

RETAIL BANKING

Retail banking means mobilizing deposit form individuals and providing loanfacilities to them in the form of home

loans,auto loans,credit cards, etc, is becoming popular. This used to be considered by the banks as a tough

proposition because of the volume of operationsinvolved. But during the last couple of years or so, banks seem to

have realized that the onlysustainable way to increase deposits is to look at small and middle class consumer retail

deposit andnot the price sensitive corporate depositors. With financial sector reforms gathering momentum,

the banking system is facing increasing companies from non-banks and the capital market. More andmore

companies are tapping the capital market directly for finance. This is one of the main reasonsfor the banks to focus

vigourously on the much ignored retail deposits. Another reason is the currentliquidity the margins are 1 to 2 percent

above the prime rate; in retail market they are 3to4 percent.It i s r ep or te d t ha t I nd ia n re t ai l ma r ke t ha s

t he po te nt ia l to b e se co nd o nl y to t he U SA . National Readership Survey 5puts Indian households with

monthly of over Rs. 5000 at 4.5 million.

According to the survey, the category of households with annual income of Rs. 2 lakhs and above isgrowing at the

rate of 30 per cent per annum. No winder, banks with vision and insight are trying towoo this market through a

series of innovative additions to their products, services, technology andmarketing methods. Fixed and unfixedDeposits, (cluster deposits which can be broken into smaller units to help meet depositors overdraft without

breaking up entirely), centralised database for anybranch banking (whereby the customer can access his account in

any of the branches irrespective of whe re th e ac co unt i s ma in ta in ed ), ro om ser vi ce s (w her eb y th e

customers are visited at their residences offices to enable them to open their accounts), automatic

teller machines, tele bankingnetwork, extended banking time, courier pickup for cheques and

documents, etc are some of the privileges extended to the customers by the banks in are eagerness to cultivate

the retail market. Inshort, in the bold new world of retail bankingthe customer is crowned as king.

RETAIL BANKING-A COOL OASIS

To bankers struggling through the shifting sands of corporate credit, retail bankinglooks like a cool oasis. Corporate

Credit, retail banking looks like a cool oasis.Corporate customers rely less on commercial banks every day as

other fund raisingavenues presentthemselves. As this disintermediation takes place and competition shrinks

margins,retail banking has gained an irresistible allure for banks because of its apparently higher margins

and potential fir growth.With their large branch networks, banks have secured sizeable deposits-23 percent of GDP.On theassets side, however, retail advances account for a mere seven per cent of total lending. The penetration of

products like car loans or credit cards is very low. With very fewfocused multi-line banks, non banks are often

significant players in retail lending, asHDFCis in house loans. Yet, many non-banks lack the minimum size to make

the necessary investments andaddress the challenges of retail banking.A l ar ge n u mb e r o f b a n k s a nd n o n -

b a n ks ha v e l a u n c hed o r r e l a u nc h e d r e t a i l p r o d uc t s a nd a re at te mp ti ng to gr ow th eir sh ar e of

the personal financial servicesmar ket . Eve n the ter m lendi ng institutions have decided that they need to go

retail to raise funds. Many organization like ICICIare betting that a large part of their future growth will come from

retail customers.Retail banking is much more than as opportunity to addressing dwindling margins. Itis an

imperative to preserve profits and market positions. Customers now have many more personalf i n a nc ia l

o p t io n s , a g ro win g c re d i t c u l tu re , a w i l l in g n e s s to s wi tc h b e twe e n f in a n c ia l s e rv ic e s

providers, and a demand for lower interest rates. As they witness these trends, banks realize that theycannot remain

passive. The new private sector banks are making inroads in the markets they serve,whil e co mp et iti on from

non-banks is growing. In respect, older institutions need to revamp their distribution capabilities,

customer management capabilities, operating culture, compensation systemand operations processing.

WEB IMPACT ON BANKS RETAIL REVENUES:

For all those gurus whove been predicting that the net will end t he business of said banks, heres a

shocker.Even in the SILICON valley-driven USA, Internet is not expected to have a major impact in banksretail

revenues.The reason: the absence of a convenient alternative at present to using cash.According to a report by

moodys Investors service, at least in the intermediate term, the internet isnot expected to impact large US banks

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core profitability or competitive position.This is despite the despite business being the simple-most important profit

source for most Americanretail banks.The core retail banking business of deposit taking will be sheltered form web-

basedcompetitors and margin shrinkage on this business. Need fo r co nv en ie nt ac ce ss to physi ca l lo ca ti on s

c oup le d with the a dva ntag es o f mul tiple d el iv ery c h a n n e l s l i k e b r a n c h , AT M, t e l e p h o n e

a n d c o m p u t e r s , c o n s u m e r s n e e d t o l e a v e m o n e y i n t r a ns ac t io n al ac co u nt s ; c us t om er

in er ti a an d th e re la ti vel y li mi te d co st sa vi ng s ava il ab le to consumers from net banking, are cited as

the main factors supporting its view.The moodys report, however, cautions that other consumer business such

asresidential mortgages,a u to lo a n s a n d c re d i t c a rd s ma y b e mo re v u ln e ra b le to we b -

b a s ed competitors.However, most US banks have thin margins or low market shares in these businesses mitigating

thisimpact, says the report made available to the Economic Times.The ra ting age ncy is ske pt ica l of banks

abil ity to gener ate subst anti al incr emen tal rev enue s fro mcross-selling financial products to existing

customers via the net.

Banks have a tendency to push what they believe customers want, rather than allowing

customers to select their preferences or utilize customer data to offer appropriate products andservices.

Lets begin bysaying that it is not only about banking products and services, but as importantly,

it is about what customers need. Banks should consider, for example, a customers particularstage in life and offer value-added banking and non-banking products and services targeted to

that stage.

The priorities of an individual will change as they progress in life and so do their financial and

non-financial needs. This being said, not all customers look at financial institutions with thesame view. For example, some customers may see institutions as a safe place to store their

money, while others a place to grow their savings.

Customers typically fall into three categories:

Those that prefer banks to recommend a set of products or services that will benefit them. Those that want to choose what they want, when they want it, and have the ability to

change their choices whenever there is a need to.

Those that will use the bank for basic needs, such as savings or loans.

I believe retail banks should focus on the first two categories as offering the greatest revenue

opportunities. Banks can capitalize by mixing banking and non-banking product and serviceofferings for their customers in an easy, convenient and efficient manner.

What is a product bundle?

Product bundling is a concept that has been applied successfully by various industries for many

years. Recently, it has begun to catch interest in the banking world. A bundle is a group of two or

more products or services offered to a customer, from which a customer derives better value thanif the products were purchased individually.

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Product bundling is the concept of tying products together to create an appealing package for

customers. These products do not have to belong to the same line of business and can introduce

customers to additional businesses and ideas that they otherwise might not have been exposed to.

Bundles can be categorized into simple offerings where convenience or price is the main factor,

or integrated bundles where non-price benefits (such as additional product features) provideadded value. Other lifestyle-oriented bundles may look at the overarching need of a customer.

What makes product bundling so appealing?

One of the best-known everyday examples comes from the fast food industry: the McDonalds

value meal. What is a value meal? It is a combination of various items from the McDonalds

menu offered at a discounted price. Customers are drawn to value meals due to their cheaperprice, as well as the ability to get more for a better price, rather than buying each product

individually.

Similarly, banks offer customers a package of products with some sort of incentive for doing so.

Value is derived from a discounted price, additional non-price benefits or other rewards. What

are some of the different types of bundles available through a Product and Pricing LifecycleManagement solution, such as miRevenue?

Closed bundle:A bundle where all the products or services are mandatory. Based on subscribing

to the bundle, a customer will receive added value.

Open bundle:At least one or more products or services is mandatory and by adding optional

products or services, the customer receives additional benefits or value. Products and services arechosen from a pre-fabricated list.

Dynamic bundle:A personalized bundle created by the customer or relationship manager. It is

comprised of products and services to meet the needs of the customer at a specific point in time

and provides additional value based on the customers chosen combination.

Going to the next level

Its time for banks to move towards the next level of customized offerings and services. Forbanks to differentiate themselves and move forward, they need to allow customers and

relationship managers to dynamically bundle products and services based on their preferences.The value should vary based on utilization of each of the product or service within the bundle.

Simply put, the more you bank with me, the more value we will provide in return.

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By applying these concepts, the revenue uplift could be tremendous. Statistically, the average

person has three or four banks with two or more products in each bank. Using bundles, or

providing the ability to customize products and services based on preferences, banks can shift

customer behaviour, assets and utilization. If a customer was to move his or her assets orproducts to your bank or if you were to influence the customer to utilize more of your products

or services, imagine the revenue uplift and increased customer wallet share.

The digital marketplace: Bundling non-banking products

By introducing non-banking products or services, banks can cater to customer lifestyles andneeds. For example, banks have begun to offer insurance on items such as mobile phones, travel

insurance, identity theft protection and premier event access. Banks can explore lifestyle bundles

with television and Internet services in association with a home loan and home insurance.

Why introduce these value-added services into the mix?

Banks can generate additional revenues from existing customers by offering these

services.

Bank customers can have a single location to purchase multiple products and services,especially if there is additional value in the form of convenience or price.

Most importantly, customers will return to continuously update and personalize their non-

banking products or services on a regular basis. This forum provides banks with a captiveaudience to whom they can offer banking products and services.

By allowing customers to customize their experiences through various channels, and by allowing

banks to offer suitable products and services based on customer data, banks can increase theirwallet share, generate additional revenues, and create customer stickiness and retention.

For example, when a 20-year-old customer logs in to his mobile bank account, banks can offer

him a package where he gets two free movie tickets per month if he spends at or above some

dollar amount on his credit card every month and subscribes to insurance for his gadgets (phoneand tablet), as opposed to offering a life insurance policy or wills and estate planning services.

Alternatively, banks can let the customer pick and choose what he or she wants and, based on

those choices, offer incentives, discounts or rewards.

Product and Pricing Lifecycle Management

Under a Product and Pricing Lifecycle Management (PPLM) model, suitable product andproduct bundles can be generated based on customer or other data, across lines of business and

business units, allowing product and relationship managers to create dynamic bundles at the right

price point and with appropriate customer benefits.

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Retail banking

From Wikipedia, the free encyclopedia

Jump to:navigation,search

A series onfinancial services:

Banking

Types of banks

Central bank

Advising bank

Commercial bank

Community development bank

http://en.wikipedia.org/wiki/Retail_banking#mw-navigationhttp://en.wikipedia.org/wiki/Retail_banking#mw-navigationhttp://en.wikipedia.org/wiki/Retail_banking#mw-navigationhttp://en.wikipedia.org/wiki/Retail_banking#p-searchhttp://en.wikipedia.org/wiki/Retail_banking#p-searchhttp://en.wikipedia.org/wiki/Retail_banking#p-searchhttp://en.wikipedia.org/wiki/Category:Financial_serviceshttp://en.wikipedia.org/wiki/Category:Financial_serviceshttp://en.wikipedia.org/wiki/Category:Financial_serviceshttp://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Advising_bankhttp://en.wikipedia.org/wiki/Advising_bankhttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Community_development_bankhttp://en.wikipedia.org/wiki/Community_development_bankhttp://en.wikipedia.org/wiki/Community_development_bankhttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Advising_bankhttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Category:Financial_serviceshttp://en.wikipedia.org/wiki/Retail_banking#p-searchhttp://en.wikipedia.org/wiki/Retail_banking#mw-navigation

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Wire transfer

Cheque

SWIFT

Automated Clearing House

Electronic bill payment Giro

Banking terms

Loan

Money creation

Fractional reserve banking

Automatic teller machine

Bank regulation

Anonymous banking

Islamic banking

Private banking

Ethical banking

Finance series

Financial market

Financial market participants

Corporate finance

Personal finance

Public finance

Financial regulation

v

t

e

Retail bankingis when abankexecutes transactions directly with consumers, rather than

corporations or other banks. Services offered includesavingsandtransactional accounts,

mortgages,personal loans,debit cards,andcredit cards.The term is generally used to distinguishthese banking services frominvestment banking,commercial bankingorwholesale banking.It

http://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/SWIFThttp://en.wikipedia.org/wiki/SWIFThttp://en.wikipedia.org/wiki/Automated_Clearing_Househttp://en.wikipedia.org/wiki/Automated_Clearing_Househttp://en.wikipedia.org/wiki/Electronic_bill_paymenthttp://en.wikipedia.org/wiki/Electronic_bill_paymenthttp://en.wikipedia.org/wiki/Girohttp://en.wikipedia.org/wiki/Girohttp://en.wikipedia.org/wiki/Category:Banking_termshttp://en.wikipedia.org/wiki/Category:Banking_termshttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Money_creationhttp://en.wikipedia.org/wiki/Money_creationhttp://en.wikipedia.org/wiki/Fractional_reserve_bankinghttp://en.wikipedia.org/wiki/Fractional_reserve_bankinghttp://en.wikipedia.org/wiki/Automatic_teller_machinehttp://en.wikipedia.org/wiki/Automatic_teller_machinehttp://en.wikipedia.org/wiki/Bank_regulationhttp://en.wikipedia.org/wiki/Bank_regulationhttp://en.wikipedia.org/wiki/Anonymous_bankinghttp://en.wikipedia.org/wiki/Anonymous_bankinghttp://en.wikipedia.org/wiki/Islamic_bankinghttp://en.wikipedia.org/wiki/Islamic_bankinghttp://en.wikipedia.org/wiki/Private_bankinghttp://en.wikipedia.org/wiki/Private_bankinghttp://en.wikipedia.org/wiki/Ethical_bankinghttp://en.wikipedia.org/wiki/Ethical_bankinghttp://en.wikipedia.org/wiki/Category:Financehttp://en.wikipedia.org/wiki/Category:Financehttp://en.wikipedia.org/wiki/Financial_markethttp://en.wikipedia.org/wiki/Financial_markethttp://en.wikipedia.org/wiki/Financial_market_participantshttp://en.wikipedia.org/wiki/Financial_market_participantshttp://en.wikipedia.org/wiki/Corporate_financehttp://en.wikipedia.org/wiki/Corporate_financehttp://en.wikipedia.org/wiki/Personal_financehttp://en.wikipedia.org/wiki/Personal_financehttp://en.wikipedia.org/wiki/Public_financehttp://en.wikipedia.org/wiki/Public_financehttp://en.wikipedia.org/wiki/Financial_regulationhttp://en.wikipedia.org/wiki/Financial_regulationhttp://en.wikipedia.org/wiki/Template:Bankinghttp://en.wikipedia.org/wiki/Template:Bankinghttp://en.wikipedia.org/wiki/Template_talk:Bankinghttp://en.wikipedia.org/wiki/Template_talk:Bankinghttp://en.wikipedia.org/w/index.php?title=Template:Banking&action=edithttp://en.wikipedia.org/w/index.php?title=Template:Banking&action=edithttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Personal_loanhttp://en.wikipedia.org/wiki/Personal_loanhttp://en.wikipedia.org/wiki/Personal_loanhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/Commercial_bankinghttp://en.wikipedia.org/wiki/Commercial_bankinghttp://en.wikipedia.org/wiki/Commercial_bankinghttp://en.wikipedia.org/wiki/Wholesale_bankinghttp://en.wikipedia.org/wiki/Wholesale_bankinghttp://en.wikipedia.org/wiki/Wholesale_bankinghttp://en.wikipedia.org/wiki/Wholesale_bankinghttp://en.wikipedia.org/wiki/Commercial_bankinghttp://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Personal_loanhttp://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/w/index.php?title=Template:Banking&action=edithttp://en.wikipedia.org/wiki/Template_talk:Bankinghttp://en.wikipedia.org/wiki/Template:Bankinghttp://en.wikipedia.org/wiki/Financial_regulationhttp://en.wikipedia.org/wiki/Public_financehttp://en.wikipedia.org/wiki/Personal_financehttp://en.wikipedia.org/wiki/Corporate_financehttp://en.wikipedia.org/wiki/Financial_market_participantshttp://en.wikipedia.org/wiki/Financial_markethttp://en.wikipedia.org/wiki/Category:Financehttp://en.wikipedia.org/wiki/Ethical_bankinghttp://en.wikipedia.org/wiki/Private_bankinghttp://en.wikipedia.org/wiki/Islamic_bankinghttp://en.wikipedia.org/wiki/Anonymous_bankinghttp://en.wikipedia.org/wiki/Bank_regulationhttp://en.wikipedia.org/wiki/Automatic_teller_machinehttp://en.wikipedia.org/wiki/Fractional_reserve_bankinghttp://en.wikipedia.org/wiki/Money_creationhttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Category:Banking_termshttp://en.wikipedia.org/wiki/Girohttp://en.wikipedia.org/wiki/Electronic_bill_paymenthttp://en.wikipedia.org/wiki/Automated_Clearing_Househttp://en.wikipedia.org/wiki/SWIFThttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Wire_transfer

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may also be used to refer to a division of a bank dealing with retail customers and can also be

termed as Personal Banking services.

In the US the term Commercial bank is used for a normalbank to distinguish it from an

investment bank. After the great depression, through theGlassSteagall Act,the U.S. Congress

required that banks only engage in banking activities, whereas investment banks were limited tocapital marketsactivities. This separation was repealed in the 1990s. Commercial bank can also

refer to a bank or a division of a bank that mostly deals with deposits and loans from

corporations or large businesses, as opposed to individual members of the public (retail banking).

http://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Acthttp://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Acthttp://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Acthttp://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Acthttp://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Acthttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Act