Retail Banking

Definition ∞ Retail banking provides financial services directly to individual consumers. This segment of the financial industry offers products such as checking accounts, savings accounts, personal loans, and mortgages. Traditional retail banking models are now contending with the emergence of decentralized finance (DeFi) and digital asset platforms. These new systems offer alternative avenues for savings, lending, and payments, challenging established banking operations.
Context ∞ Retail banking is currently adapting to increased digitalization and competition from financial technology firms and decentralized protocols. The discussion involves how traditional banks can incorporate blockchain technology or offer digital asset services to retain customers. A critical future development involves the potential for traditional retail banks to issue stablecoins or integrate with digital asset exchanges, altering consumer financial access.