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Retail banking is whereby which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include; savings and checking accounts, mortgages, personal loans, debit cards amongst others. (

b. banking refers to the consumer-oriented services offered by commercial banks. These services include checking and savings accounts, mortgages and various types of loans and investment services relating to retirement and educational planning. How It Works/Example: Retail banking encompasses the services offered to consumers by commercial banks. The term "retail" refers to the almost storefront-shopping nature of commercial banking services. Most commercial banks have extensive retail banking services and products to reach a wide consumer base. Here's a brief story about Bob's day at his bank XYZ. He arrives at the bank one day to deposit a $2000 paycheck into his account. He decides to deposit $1000 of the paycheck into his existing checking account. The other $1000 he decides to use to open a savings account. Bob sits with a bank representative who explains the various savings account options and helps him with opening an account once he's made a decision. Additionally, the account representative informs Bob of retirement plans the bank offers as well as educational savings plans for his children. Before he leaves, Bob also takes information on auto loans offered by the bank since he is considering purchasing a new car. While at the bank, Bob was able, in one place, to deposit money, open a savings account and find information relating to banking products he may need in the future. ( )

c.History of retial banking.

Basic banking services such as deposits for safe keeping, saving, or borrowing for personal or business use is as old as human civilisation. Organised banking services started in 15th and 16 century Europe, when banks began opening branches in commercial areas of large cities. By the last quarter of the 19th century, banks were consolidating their branch networks so that they

could operate in a more integrated manner (Consoli, 2003). Mergers and acquisitions allowed banks to grow quickly but, in the absence initially of information and communication technologies, their services remained largely local. The policy of opening new branches continued throughout the twentieth century as a means of business expansion, but services were limited to the provision of routine operations such as deposits, withdrawals and basic loan services. To cope with the increasing volume of work, and to achieve consistency across branch networks, banks started to standardise their record keeping and accounting practices. This also helped them to effectively connect branches. Standard record keeping also resulted in the appearance of new professions such as bank clerks. The arrival of the typewriter in the late nineteenth century helped to standardise internal/external communications, and other tools such as the telegraph made communications between branches and headquarters a daily routine.

(,-diversification-and-mobile-platforms ) It is no secret that the banking industry has undergone some major changes over the past decade, fuelled by the rise of the Internet and the decline of the global economy. One of the biggest changes brought on by the events of the past four years has been the increased focus of banks to diversify their product offerings within the powerful growth engine of retail banking. According to McKinsey, retail banking accounted for more than half of the worlds banks annual revenue in 2010 estimated at about $3.4tn (The Economist, 2012). This shows that retail banking remains one of the most basic and universal services provided to consumers as well as a reliable generator of consistent profit and high return on equity. So what does the future hold for it? We have seen an evolution in the way banks are approaching retail banking as they look beyond the traditional product offerings of retail banking in order to compete in increasingly important areas such as Wealth Management advisory including for customers retirement and protection needs. Financial Planning Planning future financial needs, dreams and aspirations continues to be an overwhelming exercise for most individuals. That is one reason why we are seeing a trend where more and more retail customers are seeking professional advice. Our recent HSBC Expat Explorer survey, which gives us an important insight into the expectations and needs of customers in our local markets, once again showed the importance of focusing on customer needs in retail banking, and the way they can vary at different points in an individuals life.

The findings showed that many expats in the Middle East have reported being better off financially than in their home countries, and having more disposable income. In fact roughly two-thirds of expats in UAE (69%), Qatar (67%), Bahrain (66%), and Oman (65%) have reported higher disposable income since relocating to their current country, compared with only 52% of expats globally. With this growth in wealth there is usually a need for increased assistance in managing these finances. The survey shows that globally more than half of expats (62%) have experienced their finances becoming more complicated since moving abroad. Two thirds reported that they had more investment options open to them since relocating; this in turn made their financial situation harder to manage, highlighting a need for more or better financial planning and advice. HSBCs 2012 Expat Explorer survey also shows that expats earning $200,000-250,000 per annum have moved over time from a higher proportion of cash investments to a relatively even mix of cash, real estate and equities, seeking a greater diversified portfolio of investments. Shifting trends Perhaps the most significant key towards unlocking retail bankings vast potential in still-volatile times is the ability to monitor shifting consumer trends due to developing technologies, and adapting to these shifts fast enough both by embracing new technological platforms and ensuring relevance of products. If we look at the way retail banking has evolved over the years, we can see there was a clear evolution from focusing on speed (more tellers, more ATM machines) to convenience (ATMs in shopping malls/town centers, phone banking, online banking) the key is to pinpoint what the next step in this evolution will be, and the signs are pointing to efficiency as the game-changer. What do we mean by efficiency? It means that banks need to make their day-to-day workings more efficient, and ensure that everyday retail banking activities can be handled by online banking, applications and automated tellers in order to avoid making customers drive somewhere or make a call for simple front-desk activities. Efficiency also means standardisation of the customer experience. Globalisation means that banks need to offer the same quality banking experience across the world. This can include the ability to withdraw money from an ATM in any country in that local currency using one card, or getting the same quality of financial advice in the Middle East that you would in Europe or North America. Efficiency also means utilising your global network to make international transactions easier for customers.

Finally, efficiency means embracing technology. An example of this is smart-phone banking, which may soon replace traditional banking methods and needs to be fully integrated and embraced by banks. Like all forms of electronic banking, it saves significant amounts of paperwork by taking statements online, which in turn is a big cost-saver for the bank. ve