What type of banks are involved in providing services to the general public?

Commercial and retail banks are specifically designed to provide services to the general public. These banks focus on a wide range of financial services, including deposit accounts, personal loans, mortgages, credit cards, and various other banking products that cater directly to individuals and small businesses. Their primary goal is to facilitate everyday financial transactions, manage personal finances, and provide accessible credit.

In contrast, investment banks primarily work with large corporations and governments, offering services such as underwriting, mergers and acquisitions consulting, and asset management, which do not directly serve the general public. Hedge funds and pension funds are also not focused on serving the general public; hedge funds typically engage in high-risk investments aiming for high returns for their accredited investors, while pension funds manage the retirement savings of individuals and often invest them in various asset classes. These different purposes underline why only commercial and retail banks are considered institutions that cater specifically to the broader public.