Banks operate in a variety of different ways, and serve a variety of different sectors. As such, large firms will often have 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.
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 financing.
The following are some other products and services that may be offered under retail banking divisions:
Commercial banking does the same that retail banking does, but for a larger audience. Where retail banking is often 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.
With the increasing globalization, banks may have a specialized global banking division that specializes in cross-border transactions. In addition to the services offered by commercial banking divisions, a global banking group may provide:
Private banking divisions specialize in wealth management for the high net-worth individual or family. These may include investment, insurance and loaning products.
A banks 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 will help its clients raise capital in many different ways. This may mean underwriting debt and equity issuances, help in launching an IPO, invest the firms excess funds, and other services.