Correspondent, Retail and Wholesale Banking

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Correspondent, Retail and Wholesale Banking

Correspondent Banking: Is an essential component of the global payment system, especially for cross border transactions. Through correspondent banking relationships, banks can access financial services in different jurisdictions and provide cross-border payment services to their customers, supporting, inter alia, international trade and financial inclusion. In addition, most payment solutions that do not involve a bank account at customer level (for example remittances) rely on correspondent banking for the actual transfer of funds. Until recently, banks have maintained a broad network of correspondent relationships, but there are growing indications that this situation might be changing. In particular, some banks providing these services are cutting back the number of relationships they maintain and are establishing few new ones. 

Retail Banking: Focuses more on the individual or small business. Retail Banking, also known as consumer banking, is the typical mass-market banking in which individual customers use local branches of larger commercial banks. Services offered include savings and checking accounts, mortgages, personal loans, debit/credit cards and certificates of deposit (CDs)

Wholesale Banking: Refers to banking services between merchant banks and other financial institutions. This type of banking deals with larger clients, such as large corporations and other banks.

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