To obtain a free preview of our Banking Briefing,Retail banking, also known as personal or consumer banking, refers to the mass-market banking activities that serve the general public. Common retail banking services include checking and savings accounts, debit and credit cards, mortgages and loans, and certificates of deposit.Retail vs commercial banking
Though retail banking services are often provided by commercial banks, they are specific to individual consumers, whereas commercial banking refers to financial services provided to both the general public and large corporate clients.As digital and mobile-first features permeate the banking industry, customers are taking their money into their own hands — literally.
In 2017 alone, retail banks in the US spent $20.2 billion on digital transformation, and that's expected to grow at a compound annual growth rate of 22.5% into 2020 According to the global retail banking research director at IDC, some of the largest incumbent banks are spending over 40% of their IT budgets on digital transformationCustomers are frustrated with their banking relationships with incumbents — and if they're not resolved, the top 10 banks in the US risk losing 11% of their customers, equating to about $344 billion in lost retail deposits and a revenue hit of $16...
Business Insider Intelligence's second Mobile Banking Competitive Edge Study found 61% of mobile banking users said that they'd research a bank's mobile capabilities before opening an accountConsumers' most desirable mobile-banking feature is the ability to temporarily turn off a payment card from their phone — ranked"extremely valuable" by 47% of respondentsWithin the retail banking industry, there are specialized subdivisions of banks that exist either to offer a...