What is wholesale banking?

Wholesale banking is commonly defined as banking services provided between commercial banks and other types of financial institutions. However, the term is often used to refer to the wide range of financial services that financial institutions provide to various corporations and businesses, as well as government entities. Wholesale banking is different from retail banking in that it focuses more on corporate-style entities and high-value transactions, and retail banking focuses on providing financial services to individual consumers. Many banks typically engage in wholesale and retail banking.

The task of providing a wide range of services to large, medium and small businesses is part of wholesale banking. Often, a financial institution will provide these services at discounts based on the number of services included in the package. This approach makes it more attractive for a company to place all financial matters in one institution, rather than using different banks and branches for each banking service the company needs to perform.

This type of banking is also an option open to real estate developers, market investors and other companies that negotiate in the purchase and sale of real estate and other forms of investment. The advantage of wholesale banking in this app is the easy access to the total financial portfolio, which makes transfers between accounts much simpler. It also includes features that enable efficient transfers of ownership of shares, funds and other financial instruments between financial institutions.

The scope of wholesale banking packages that extend to corporate and government entities can also include a number of other financial services. Discounted interest rates are commonly included as part of the incentive to enter into a wholesale financing agreement. Many valuable support services such as investment advice, help with merger or acquisition details, and various subscription services are often included in wholesale banking support.

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