The term “retail banking” refers to financial services provided to people rather than companies, and it is used to refer to banking that is referred to as “consumer banking” or “personal banking” in the banking sector. Customers may manage their money, get credit, and deposit their money in a safe and secure atmosphere by participating in retail banking operations.
In other words, retail banking is the provision of financial services by financial institutions to individuals which are referred to as “institutional customers.”
Commercial banks in United State of America are also considered as Retail Banks and investment banks are limited to Investing capital in markets activities. This partition was cancelled in year 1990s and henceforth Commercial bank deals with loans and deposits from corporations or large businesses and Retail bank deals with loans and deposit from common individuals.