Wholesale banking is often defined as banking services which are provided between merchant banks and other financial institutions. Although, wholesale banking is also a term referred to the wide range of financial services that are provided by financial institutions to various businesses and corporations as well as the government. Retail banking and wholesale banking are two different things. Wholesale banking focuses more on corporate style entities and high-value transactions, while retail banking focuses on individual customers and sometimes small businesses. Sometimes a bank will engage in both wholesale and retail banking.

Wholesale banking provides the normal banking services such as checking and savings, certificates of deposit, safe deposit boxes, annuities, retirement funds and other investment opportunities. There are many packages to choose from at a wholesale banking company. Many people discount wholesale banking because they feel their money is not safe but their money is just as safe in the wholesale banking industry as it is in the regular banking industry.

Wholesale banking includes providing a large range of services to large, corporations, midsize companies and small businesses. These services are often offered at a discounted rate based on the number of services included in the package. This approach makes it more attractive for a company to place all their financial matters with a single institution rather than spreading them out into different banks and agencies for each banking service that the business needs in order to function.

Real estate developers and real estate agents in addition to market investors and others that operated by buying and selling properties or other forms of investments use wholesale banking. The advantage of the wholesale banking is in this application is the ease of access to the total financial portfolio, which makes transactions and transfers between accounts much easier. Wholesale banking also has features that allow for efficient transfers of funds, stock ownership and other financial instruments between financial institutions.

Wholesale banking packages that are extended to businesses and government entities can include a range of other financial services as well. Discounted interest rates are commonly included as part of the incentive package for entering into a wholesale financial arrangement. In addition to such valuable support services as consultation on investments, help with the details of major merger acquisitions and various underwriting services are also included in wholesale banking support.

Many of the larger banks are actually wholesale banks that deal with large corporations and governments but also deal with regular individuals. You might own a small business and want to deal with the wholesale banker, but don't know where to find one. You can ask your real estate agent who helped you find your business location if he or she knows of a good wholesale bank or you can look in the local phone book or through the Internet and find several wholesale banks willing to deal with your small business. They do not discriminate on how small or how larger businesses if you want to put your money in their bank and bundle it with packages such as savings and IRAs and CDs that they will be happy to assist you.