Standardized private customer business
The standardized private customer business (or retail banking ; from English retail " retail ") is a part of the private customer business of credit institutions , which is carried out on the mass market .
General
A private customer is any natural person who has a bank account neither for commercial nor for self-employed professional activity. In contrast to private banking , which is also part of the private customer business of the banks, is aimed at wealthy private customers and takes place on the class market , the standardized private customer business does not focus on individual solutions, but rather on the distribution of standard financial products . It is understood as a product- or production-centered, standardized mass business with a large number of bank customers who have little or no income.
Components
Essential areas of the retail business are
-
Deposit business :
- Financial products such as savings accounts , overnight and time deposits , savings bonds ;
- Securities and custody business ;
-
Lending business :
- Loans such as consumer loans , overdrafts , Lombard loans ;
- Mortgage lending ;
-
Payment transactions :
- Account management and cashless payment transactions ;
- Payment cards ;
- Cash payments and cash deposits through ATMs .
In addition, there is the sale of home loan and savings contracts , investment funds and insurance .
Compared to corporate banking, but also to private banking, the sales volume of the individual businesses is relatively low. In return, large numbers of items have to be processed. For this reason, highly standardized products are offered instead of individual solutions.
A uniformly applied price notice in accordance with Section 5 (1) PAngV in the business premises provides information about the standard rates in standardized private customer business. This includes the interest rates ( debit , credit , overdraft and credit interest ), bank charges or commissions . The credit institutions act as option fixers with regard to pricing , so they usually do not allow price negotiations.
Distribution channels
Distribution in the standardized private customer business takes place via various distribution channels :
- via our own branch network ,
- through a direct bank ,
- via telephone banking or
- through internet banking .
Distribution represents a significant cost item for the retail business. Therefore, banking products that do not require stationary distribution (and without advice) are typically cheaper.
Significantly higher margins can be generated in retail business than in business with corporate customers. Due to the high level of standardization and mass business, universal banks can make use of the law of mass production with the cost advantage of degression .
The market
In Great Britain there is an oligopoly in the retail business of a few banks that can hardly compete and thus achieve high margins in the retail business. The opposite example currently exists in Germany , which has a high density of bank branches in the retail business . A large number of different providers from savings banks to cooperative banks , major banks and exclusive private banks are competing intensively on the market.
The Swiss retail banking accounts for a very large part of the banking business, since it can be assumed that a bank clearly serves more private customers and corporate clients. That is why there are many employees here who are supposed to advise and inform customers, because a large part of the banks' profit is generated from retail banking, i.e. business with private customers, so that investing in a large number of employees is definitely worthwhile . Retail banking is hardly affected by the current financial crisis. The Swiss bank customer pays up to CHF 200 for the day-to-day services of the bank and is therefore a worldwide record holder.
Individual evidence
- ↑ Markus Quanz, Pricing Models of German Banks in Private Customers , 2011, p. 9
- ↑ u. a .: Gianpiero Galasso: Retention Marketing in Private Banking . University of Zurich, 1999, p. 23 (dissertation). ; Benjamin Meiers, Christian Schilling: The market for private banking. A provider-oriented perspective for German customers . 2007, p. 10 .
- ^ Günter Wierichs / Stefan Smets, Gabler Kompakt-Lexikon Bank und Börse , 2010, p. 181
- ↑ Ludwig Gramlich / Peter Gluchowski / Andreas Horsch / Klaus Schäfer / Gerd Waschbusch (eds.), Gabler Banklexikon (K - Z): Bank - Börse - Financing , 2020, p. 1617
- ↑ as of 2005; 19 countries studied
