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Retail vs. commercial banking: What's the difference?

Yahoo Finance
Summary
Nutrition label

75% Informative

Some banks offer retail and commercial banking, catering to both types of customers.

Commercial banking offers products and services catered to corporations, government bodies, and institutions.

Because retail banking serves individual customers rather than large corporations, it often involves smaller transactions and tends to be less profitable than commercial banking.

Commercial banks typically offer deposit accounts, loans, credit cards, and investment accounts.

Transaction value Because retail banking caters to individuals, this type of banking typically deals in smaller transactions. Commercial banking, on the other hand, often facilitates much larger transactions at a larger scale. Purpose While retail banking assists individuals in borrowing, saving, and building wealth, commercial banks offer products and services aimed at facilitating business growth. Profitability Retail banks are generally less profitable than commercial banks for several reasons. First , as mentioned above, retail banks deal with smaller transactions compared to commercial banks. Second , many retail banks operate a wide network of brick-and-mortar branches, which can cut into profitability..

VR Score

81

Informative language

84

Neutral language

50

Article tone

informal

Language

English

Language complexity

64

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

long-living

External references

no external sources

Source diversity

no sources

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