Retail, Corporate/Commercial, Global, Private, and Investment banking
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Banks operate in a variety of different ways and serve a variety of different market sectors. As such, large banking firms will often include several divisions or groups, making up the totality of bank corporate divisions. While different banks may have different divisions, these are often the main divisions offered:
Under each of these divisions, there may be further subdivisions that support each group.
Bank Corporate Divisions – Retail Banking
The retail banking division takes care of the regular day-to-day banking most people know banks for. This includes providing checking and saving services, and issuing credit cards. Retail banking divisions may also be in charge of providing loans, mortgages, and other financing.
The following are some other products and services that may be offered under retail banking divisions:
Lines of credit
Investment management and accounts
Retirement and education accounts
Bank Corporate Divisions – Commercial Banking
Commercial banking does the same things that retail banking does, but for a larger audience. Where retail banking is tailored for the individual, commercial banking caters to small businesses or larger firms. (There are, however, cases were banks will cater to small businesses under their retail banking division).
Additionally, commercial banking divisions may also provide advisory services for their clients.
Bank Corporate Divisions – Global Banking
With increasing globalization, banks may have a specialized global banking division that specializes in cross-border transactions. In addition to the services offered by a commercial banking division, a global banking group may provide:
Multi-currency management services and products
Foreign currency accounts
Foreign currency credit cards
Transborder advisory services
Bank Corporate Divisions – Private Banking
Private banking divisions specialize in wealth management for high net-worth individuals (HNWI) or families. Services offered may include investment, insurance, and loan products.
Bank Corporate Divisions – Investment Banking
A bank’s corporate division that specializes in capital raising is known as an investment bank. In fact, investment banking is often seen as the most glamorous field in the banking sector. Suits and salaries draw many aspiring business students to this very competitive field.
An investment bank helps its clients raise capital in many different ways, such as underwriting debt and equity issuances, help in launching an IPO, investing the client’s excess funds, along with other services.
Thank you for reading CFI’s guide to Bank Corporate Divisions. To keep enhancing your financial industry knowledge, check out the following free CFI resources:
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