10 Different Types of Banking That Exist Today

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93% of Americans have a bank account and reap its many benefits. Customers have a safe place to store their savings alongside accessing loans, and finances anywhere in the world.

A lot has changed since the First Bank of the United States was established in 1791, and now many types of banking have emerged.

Not sure how many types of banks there are? Don't worry, we've got you covered on all the different types of banking. 

Top 10 Types Of Banking To Choose From


1. Central Banks

This type of finance serves a governmental role as they help the country meet its economic goals through controlling monetary policy and the flow of currency. Central banks also supervise commercial banks and set interest rates.


2. Commercial Banks

Commercial banks support small to large businesses compared to individuals. Mom-and-pop stores can open checking and saving accounts, loans, get access to credit, and transfer funds to companies in foreign markets.


3. Retail Banks

Retail banks are consumer-based where you go for everyday banking and other financial services. You can access different types of banking accounts, loans, credit cards, and insurance.

They often provide financial advisement services so you can get personal loans and mortgages.



4. Private Family Banking

Private family banking funds whole life insurance policies to develop cash value. This lets customers borrow money to help pay off debt, mortgages, or to fund other aspects of your life.

These different banks offer protection so the policy owner can access the line of credit and receive a death benefit so the family has financial protection.  



5. Investment Banks

Think Morgan Stanley and Goldman Sachs.

Investment banks trade stocks and bonds between companies and investors.

They also focus on advising individuals and corporations who need financial guidance, reorganizing companies through mergers and acquisitions, and managing investment portfolios.



6. Private Banks

Private banks offer exclusive types of bank accounts to those who have $1 million of net worth. A wealthy individual owns the bank and offers a useful service to high earners so they can get advice from people who understand their financial situation and connections if they need a loan.


7. Cooperative or Mutual Banks

Cooperatives fall under retail and commercial banks. They’re distinguished by their local or community-based associations who control how business is operated.

They offer loans and bank accounts, often active in a single community.



8. Savings and Loan Association

These are financial institutions that use deposited savings to create mortgages, refinance loans, and access other loans so customers can build or renovate their property.


9. Shadow Banks

Shadow banks are less regulated, known for running money market funds and hedge funds. They get their funding by borrowing, connecting with investors, or making their own funds instead of relying on the central bank.

10. Swiss Banks 

While Swiss banks aren't necessarily different from the other types of banks mentioned above in terms of products and services offered, they do offer one major well-known advantage: privacy and discretion. There's a reason why so many wealthy individuals and businesses have used Swiss banks for decades. They provide the trust and anonymity from governments, media, or businesses. Sometimes this is used for questionable financial activities, but other times it just provides a type of banking for bank customers and corporate entities that just want to be left alone.


These Are the Top Different Types of Banking

It’s important to understand the various types of banking as they all meet different needs. Private and investment banks are useful for high earners whereas commercial banks are perfect if you run a mom-and-pop store. There’s a financial institution for everyone, so it’s important to learn how each one helps. Good luck with your banking!

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