Retail Banks primarily focus on individual customers and smaller businesses. Retail Banking offers comprehensive banking services such as personal loans and deposits, checking accounts, clearing, debit and credit cards, leases, mortgages and ATM networks.
In the United States, retail banking has been a very lucrative area for financial services firms in the past three to five years. In 2006, the US banks have unveiled another set of record annual profits.
Aruvian's R'search analyzes The Retail Banking Industry in United States in Michael Porter’s Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.