“Retail Banking VS Investment Banking – Scope and Growth Opportunities”
‘Make a decision that can change your life’
In this contemporary world, many of us really confused about Retail banking and Investment
banking. In simple words, Retail banking is the banking that we do on a daily basis. Opening a
savings account, depositing cash or cheque, withdrawing money, funds transfer, salary credit by
employer etc. So essentially the products are savings account, fixed deposit account, personal
loans, education loans, overdrafts, demand drafts, electronic funds transfer, utility bill
payments etc. and the customers are individuals.
The Indian Retail Banking environment today is changing fast. The changing customer
demographics demands to create a differentiated application based on scalable technology,
improved services and banking convenience. Increasing use of modern technology has further
enhanced reach and accessibility. The rural areas have the large purchasing power at their
disposal and this is an opportunity to market Retail Banking.
As the Indian economy grows faster, retail banking is going to emerge a major driver. The rise of
Indian middle class is an important contributory factor in this regard. The percentage of middle
to high-income Indian households is expected to continue rising. In this regard, Retail banking
has immense opportunities in a growing economy like India, which in turn will produce huge job
opportunities for the youth of this country.
On the other hand, Investment banks play a different role compared to retail banking. They
provide solutions to corporates. Say, a company wants to take over other company or two big
companies want to merge. Investment banker play a vital role in this. They perform financial
checks for both the companies.
Investment banking is a truly up and coming career option that is becoming growing popular
among the ambitious youth in India. An investment banker, simply put, is someone who helps
their client (often a bank or a financial firm) invest their money in a way that will help them
yield the highest possible returns. These jobs come with a lot of responsibility like dealing with
debt, stocks and bonds, mergers and acquisitions, securities and derivatives. That being said,
there are also a number of reasons the youth in India is flocking towards this career. It is an
exceedingly rewarding job with rewards in monetary terms as well as personal and career
[Link] leaves an enormous scope for learning which is a truly valuable thing in anyone’s
career.
Another very important reason for this being a popular career choice in finance is that this job
gives you pathways to bigger careers like entrepreneurship, wealth management and venture
capital. The good news for anyone considering this career is that you don’t require any specific
stream. You can get into the field irrespective of if you have a background in science, arts or
commerce as far as your subjects are related – like math’s and economics.
