Cord blood banking is the process of collecting and storing the blood found in a newborn's umbilical cord and placenta after birth. This blood is rich in stem cells, which can be used in medical treatments for various diseases, including certain cancers and blood disorders. Parents can choose to bank this blood for potential future use. There are two main types of cord blood banking: private and public. In private banking, families pay to store their baby's cord blood for personal use, while in public banking, the cord blood is donated for use by anyone in need. Both options can provide valuable medical resources.