Difference Between Investment Banks and Commercial Banks In the world of finance, two types of banks play very different but equally important roles-investment banks and commercial banks. Both are part of the financial ecosystem yet they function differently. Commercial bank handles your savings account the another helps companies raise millions through the stock market. Let’s explore the major differences between investment banks and commercial banks: 1 . Core Function Investment Banks assist companies, governments, and institutions in raising capital through IPO, M&A, underwriting, and financial advisory services. Commercial Banks primarily serve individuals and businesses by accepting deposits, offering loans, and providing retail banking services. 2. Client Base Investment Banks work with large corporations, institutional investors, and high-net-worth clients. Commercial...