Personal & Corporate Banking | MSME & Agri banking (2024)

FAQs

What is Personal & corporate banking? ›

The big difference between corporate banking and private banking is the client base. While corporate banking provides credit products for corporates, financials, and governments, private banking deals with high net worth (HNW) and ultra high net worth (UHNW) individuals and families.

Retail banking is the part of a bank that deals directly with individual, non-business customers. This operation brings in customer deposits that largely enable banks to make loans to their retail and business customers. Corporate, or business, banking deals with corporate and other business customers of varying sizes.

Corporate banking, on the other hand, is a type of banking service that is offered to corporate clients, including small and medium-sized enterprises (SMEs) and large corporations.

Corporate banks specifically cater to large companies and therefore have a small client base than commercial banks. Commercial banks offer loans to small, mid-size and larger companies. Corporate banks mostly work with large corporations, MNCs and government institutions.

Personal banking refers to all the services banks design and offer to individual consumers rather than businesses. These services include checking and savings accounts, credit and debit cards, certificates of deposit (CDs), loans, and more.

Most commonly, personal banking includes checking accounts, savings accounts, money market accounts, and certificates of deposit (CDs). Personal banking even includes things like mortgage loans, auto loans, overdraft lines of credit, credit cards, and personal loans.

The basics of business and personal accounts

A personal bank account is designed to help you manage your individual income and costs, like household expenses. A business bank account is designed to manage the cash flow and expenses that come with running a business.

When a corporation is seeking to improve its financial well-being, it often hires a corporate banker. These specialized bankers handle corporate funds, ensure records involving funds are accurate and offer financial advice.

Many professionals end up staying in corporate banking for the long term because it offers a nice work/life balance, reasonable advancement opportunities, and high pay at the mid-to-top levels.

Corporate banking teams provide financial services like cash management, payment processing, credit products, and hedging strategies to large corporations.

What is a corporate bank account? ›

A corporate account is a bank account opened under a company's name to keep business finances separate from personal finances. It can be used to make transactions and invest in the name of the enterprise.

Corporate banking is a long-term relationship that involves traditional banking, risk management, and financing services to corporations. Investment banking, on the other hand, is transactional and assists corporations with one-time transactions, such as an initial public offering (IPO).

Corporate banking offers more services and products, such as loans, lines of credit, and investment services, while private banking offers more personalized services and products, such as wealth management and trust services.

Therefore, it can be regarded as a segment of corporate banking. This is why transaction banking, compared to corporate banking, can be stated as a narrower concept, and it includes services like trade finance deals and cash flows management.

One primary difference between commercial banking vs. investment banking is that investment banks typically raise money by selling securities (like stocks and bonds). On the other hand, commercial banks use consumer deposits to fund loans and mortgages, and the interest on those loans becomes profit for the bank.

While Personal accounts are designed for the needs of individual clients and are perfect for everyday payments and transfers, Business accounts provide solutions for companies of all sizes and industries.

A corporate or company account refers to a bank account that's opened in the name of a company. The account can receive business income and facilitate various business transactions. Companies with a board of directors should open a corporate account for convenient financial management.