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Paul Tracy

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Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers. While there, Paul authored and edited thousands of financial research briefs, was published on Nasdaq. com, Yahoo Finance, and dozens of other prominent media outlets, and appeared as a guest expert at prominent radio shows and i...

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Updated August 5, 2020

What is Universal Banking?

Universal banking refers to the practice of offering clients retail banking as well as investment services.

How Does Universal Banking Work?

Investment services and retail banking services (savings and checking accounts, loans, mortgages, etc.) have customarily been housed in separate banking institutions: investment banks and retail banks, respectively. Commonly practiced by European banks, Universal banking brings retail and investment services together in the same bank for client convenience and higher revenues

To illustrate, suppose bank XYZ offers universal banking services. Current clients who hold only a checking or savings account can also learn about and take advantage of investment services should they wish to open their own investment portfolio. XYZ's combined retail and investment banking services allow its clients to fulfill all of their banking needs in the same place.

Why Does Universal Banking Matter?

Universal banking benefits both banks and their clients. The integration of retail and investment services benefits banks by providing them with more ways to generate revenue, while it benefits clients by providing them with the convenience of accessing a full range of banking services from a single provider presumably trust.

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At InvestingAnswers, all of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Universal Banking.
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