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

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..