Retail Banking

Retail Banking

Retail Banking is the part of the financial system that everyday people interact with the most. For instance, they are in charge of essential services like a loan, credit and debit transactions as well as peoples checking and savings accounts. This is where most people deposit the money they make as income and then move it from this account to others like a portfolio. The majority of the population starts off with a retail bank and it acts as the gateway to other levels of banking that others might use but more importantly, what do people that work in retail banks do?

History

Furthermore, due to the common nature of Retail Banks and how necessary they are, they began all the way to medieval times in Europe in which people would deposit items like gold for a bank to take care of it. Over time with many economic developments these banks expanded and eventually started taking other types of money which wasn't gold which allowed many others to begin using these banks. In the 20th century with new ideas like loans becoming popular, even more people started coming towards these commercial banks that would allow them to take out loans and use debit. This ended up backfiring at first as seen in the Great Depression but was overcome late on and now these banks continue to develop. More and more technology like ATM’s are being created and now with AI, we have to see where else it will take us.

What do they do?

Now actually focusing on the retail bankers themselves, they have a much different work style than previously mentioned jobs. For instance, retail bankers focus mainly on singular customers rather than large companies and spend a majority of the time making sure that their clients' transactions and money is going about as it should be. These bankers however still need a large level of financial knowledge however as they also take care of areas like loans where they are responsible with giving out loans and calculating the percentages which is no easy task. This job makes sure to combine both the financial and hard working aspect as well as the friendlier and more social side of finance which many prefer. Retail bankers also have lower amounts of work load and do not undergo as many high pressure situations as others like investment banking which many prefer but does come at the result of lower compensation. 

What is Expected of them

Retail Bankers are unique and are not to be taken lightly however as they are expected to have a large knowledge of financial components as well as be able to translate this information to clients so they understand. The main focus they have is to attract customers and to keep customers which is where the social and extroverted aspect of Retail banking comes into place since due to how customers are treated, they will stay with a bank or switch. This job however also puts a lot of pressure on the workers as they must process and remember information from thousands of clients plus be able to help them yet if they make one mistake, they can face backlash as a result. Thus, as a retail banker you need to be able to communicate and attract customers as well as have the financial knowledge needed to keep people’s everyday finances working smoothly.

Famous Retail Banks

Some of the most memorable people in the retail bankers are the CEO’s of the large banks as actual retail bankers are not very credited and gain prestige therefore these people consist of: 

Jamie Dimon – CEO of JPMorgan Chase, one of the largest retail banks in the U.S., serving millions of everyday customers
Brian Moynihan – CEO of Bank of America, a major retail and consumer banking institution
Charlie Scharf – CEO of Wells Fargo, known for its large branch network and consumer services
Jane Fraser – CEO of Citigroup, which has a significant global consumer banking presence

Conclusion

All in all, Retail Banks help function everyday components of people’s everyday lives and maintain the great majority of society functioning. While they do not get as much prestige and fame for exceeding in their field as well as are not as compensated in comparison to the other jobs in finance, it makes it up in the more care free and smaller workload they face.