What Is a Niche Bank?
Niche banks cater to and serve the needs of a certain demographic segment of the population. Niche banks typically target a specific market or type of customer and tailor a bank’s advertising, product mix, and operations to this target market’s preferences.
How a Niche Bank Works
Niche banks are usually types of commercial banks, which accept deposits, extend loans, and offer basic financial products like certificates of deposit (CDs), checking, and savings accounts.