Wholesale banking is commonly defined as banking services that are provided between merchant banks and other financial institutions. However, wholesale banking is often used as a term to refer to the wide range of financial services that are provided by financial institutions to various corporations and businesses, as well as to government entities. Wholesale banking is different from retail banking, in that the former focuses more on corporate style entities and high value transactions, while the latter is focused on providing financial services to individual consumers. Thus, a bank will typically engage in both wholesale and retail banking.

Wholesale banking will include the task of providing a broad suite of services to large corporations, mid-sized companies, and small businesses. Often, a financial institution will provide these services as discounted rates, based on the number of services included in the package. This approach makes it more attractive for a company to place all financial matters with the single institution, rather than using different banks and agencies for each banking service that the business needs in order to function.

Wholesale banking is also an option that is open for real estate developers, market investors, and others that operate in the buying and selling of properties and other forms of investment. The advantage of wholesale banking in this application is the easy access to the total financial portfolio, which makes transfers between accounts much simpler. Wholesale banking also includes features that allow for efficient transfers of stock ownership, funds, and other financial instruments between financial institutions.

The scope of wholesale banking packages that are extended to businesses and governmental entities can include a range of other financial services as well. Discounted interest rates are commonly included as part of the incentive for entering into a wholesale finance arrangement. Such valuable support services as consultation on investments, help with the details of a merger or acquisition, and various underwriting services are often included with wholesale banking support.