Retail Banking Market Synopsis

Retail Banking Market Size Was Valued at USD  2.30 trillion in 2023, and is Projected to Reach USD  5.12 trillion by 2032, Growing at a CAGR of 9.30% From 2024-2032.

Retail banking therefore deals with the banking services for the general public or for the end user customer. It involves saving and checking account, personal loans, mortgages, debit/credit cards, and other standard services customer services for the general public.

• The  retail banking market  is growing at a fast pace due to technological factors, shift in consumer trends and high competition. Historically, retail banking centred on basic financial products such as savings and checking accounts, credit facilities, mortgages and credit cards; however, today these institutions are targeting more specific, technology-rich propositions. Its movement is mainly caused by the emergence of fintech and neo-banks that opened Internet-based marketplaces with lower costs and better services. These contenders are exploiting the customer need for convenient self-service that is responsive to mobile banking needs with pressure placed on traditional banks to adapt and evolve. Bursting of applications in smart mobiles, online banking and natural language processing based online customer services are turning into future customer retention strategies. Consequently, the structures of the retail banking are transforming towards the integration of multi-products financial services like real-time payments, budgeting tools and, customised financial advice via artificial intelligence based chatbots and analyses tools.
• The  legal environment  is yet another important aspect that defines the conditions of developing the retail banking market. World governments and financial authorities have strengthened the measures for compliance because of the stock market crash in 2008 and related fluctuations that followed. Regulations are generally cast in a protectionist perspective; the EU’s General Data Protection Regulation or the GDPR were put in place to protect consumer data and the similar with the US’ Dodd-Frank Act to strengthen the financial institutions. Nevertheless, the fulfillment of these strict regulatory requirements boosted the expenses of a bank’s operations and has led to starting the utilization of automation and cloud services for compliance. However, one cannot also ignore the need to drive towards attaining the status of sustainable economy and the comparison of the banking industry practices to sustainable and responsible manner. Fueled by awareness on the two factors, Retail Banks are gradually adopting the Environmental, Social, and Governance (ESG) standards into their credit risk management and investment strategies. This shift has given birth to green loans and other forms of socially responsible products in retail investment; changing the retail banking environment yet again.
• The retail banking market is also experiencing  a new trend in purchasing , especially by the younger population and their focus on usage of digital tools. Banking consumers whose age is between 18 to 38 years are less likely to visit the physical buildings and more likely to open their accounts through online and mobile banking apps. This has result to shuttering of physical branches and opening more websites and social media accounts to be more secure online. However, to safeguard sensitive customer information and establish more confidence, banks are taking big risks in cybersecurity. You only need to take a closer look at some of the modern retail banking processes to realize that blockchain technology adoption is already on its way to becoming the solution for safe, transparent, and efficient transactions. Banks are also using big data and analytics to deliver custom made financial solutions, which involves, using the data to recommend to customers on matters concerning saving, investment, credits among other matters.
• Customer-orientation has become the driver in retail banking because firms seek to enhance the value proposition through the digital economy. To diversify sources of income and better serve client needs, banks are shifting their strategies regarding value-added services and adopting models of cooperation with fintechs into comprehensive models of providing clients with added-life improvements ontop the services offered by the basic banking products. APIs are useful because they enable banks to simply adopt external services that can help them make the platforms they offer to customers even more inclusive and broad. An emerging trend known as open banking is the result of such regulations as PSD2 in Europe connecting traditional financial institutions with fintech players, putting the power of consumers’ financial data and letting consumers get access to a greater number of suited financial services through a single entry point.
•  As such the future for further development within the sector of retail banking is to increasingly become digital, innovative and customer orientated.ic. As the market evolves, brick and mortar are under pressure like they have ever been and the have no option but adapt. Changes in technology, changes in legal environment and changes in consumers’ perception are some of the factors that are increasing volatility of the retail banking industry as it moves from product-based industry to customers’ needs and technology-based industry. To manage these risks and therefore succeed in this market, banks will have to venture into digital, security and personalisation.

Retail Banking Market Trend Analysis

Digital Transformation in Retail Banking

• Self-directed digital change is becoming a dominant driving force in the re-shaping of the retail banking market worldwide. Banks move along this line due to the growing use of technology in providing solutions and platforms by customers from the inception of fintech solutions. App and web based mobile banking, smart services such as AI based chatbots, and distributed ledger technologies like blockchain are becoming part of the essence of the banking services. These solutions provide great opportunities for more convenient services of banking products, for customer which do not necessarily need to come to the bank; for faster and non-transparent service supplying.
• Furthermore, they pointed out that the pandemic helped to advance the digital process as customers looked forward to less contact with people when acquiring services. This change is also making banks to set significant capital on cybersecurity in order to secure clients’ data. With the progress of technological solutions in digital banking, regular banking institutions have to integrate these technologies into their work to succeed and offer people individual services that new fintech companies are actively developing.

Expansion into Emerging Markets

• One of the most promising forms for the further expansion is retail banking; more so, in developing countries and regions where the levels of financial liberalization are comparatively low. With the increasing penetration of technology in the developing countries it is still a fact that there is still a large number of people who have no access to the banking sector and this forms a good opportunity for the retail banks to spread basic financial services and embrace new customers. As mobile devices continue to grow in popularity in these areas, it may be the only way to target those consumers without basic banking services.
• Also, the governments of many countries in the emerging markets have embarked on policies that are pushing for the use of other recognized channels of receiving and disbursing cash. Retail banks can take the advantage and provide higher value engaging relevant, affordable and appropriate Banking services to such grouped population. In addition, leveraging clients in the emerging economies, bank can foster growth and development not only for the banks and themselves, but also to the economies they are in by improving the knowledge of individuals and financial stability.

Retail Banking Market Segment Analysis:

Retail Banking Market Segmented based on  Type,Function, and End User.

By   Type, Commercial Banks segment is expected to dominate the market during the forecast period

• The property & casualty insurance market can easily be linked to financial institutions such as the commercial and rural banks where in most instances, the later play the role of facilitating the insurance products. As the biggest market with numerous customers and facilities, the commercial banks continue to have a choke hold on the distribution of the property and casualty insurance due to the trust accumulated over the years within their customer circle. They provide insurance products to their banking services that include property, car, home insurance to the urban and corporate market.

• While local and rural oriented banks find insurance solutions for risky agricultural ventures and property associated risk coverage for the rural populace. These institutions usually partner microinsurance companies to develop cheap insurance products that help to offset the risks farmers and other small scale businesses face.

By Function , Debit and Credit Card Issuance segment held the largest share in 2023

• Bank account opening, deposits, withdrawal and card issuance, which are core activities in the retail banks, remain critical in the offering of property & casualty insurance products.. These insurance services are sold alongside these basic products where subscribing to the insurance is made available when opening an account or applying for debit or credit cards. For consumers, it makes their activities easy to handle because they get both banking as well as insurance services from one provider. Banking services involving investment and insurance also give customers an option of preserving their wealth and at the same time, making more.of property & casualty insurance products. Banks often bundle these insurance services with their core offerings, enabling customers to easily purchase insurance when opening accounts or applying for debit and credit cards. This integrated approach simplifies the process for consumers, allowing them to manage both their banking and insurance needs under one roof.
• Investment and insurance services offered by banks also provide customers with opportunities to protect their assets while growing their wealth. Over time, property and casualty insurance products together with investment solutions provide financial security for client’s personal properties or businesses in case of any eventuality.

Retail Banking Market Regional Insights:

North America  is Expected to Dominate the Market Over the Forecast period

• North America is the largest retail banking market mainly due to the favourable environment in the region for banking development and use of innovative digital banking solutions. The economic environment in the region is favourable for the development of mobile an online banking due to high internet and Smartphone subscription. The customers of the U.S. and Canada appreciate digital banking options since they are simple, safe, and comfortable. Banks in this region are opening their wallets to adopt IT solutions such as AI, Blockchain, and Data Analytics as tools to create delight for customers and remain relevant.
• Furthermore, regulation pertaining to North American countries aim at consumer interest and data protection to enhance the effectiveness of banking to customers. Big banks including; JPMorgan Chase and Bank of America are some of the firms empowering the region with comprehensive products and services to the consumers and companies making it a key driver of retail banking on the global scene.

Active Key Players in the Retail Banking Market

• JPMorgan Chase (United States)
• Bank of America (United States)
• Wells Fargo (United States)
• Citibank (United States)
• HSBC (United Kingdom)
• BNP Paribas (France)
• Deutsche Bank (Germany)
• Santander (Spain)
• Barclays (United Kingdom)
• Royal Bank of Canada (Canada)
• Others Key Player

Key Industry Developments in the Retail Banking Market

• In February 2023, JPMorgan announced expansion of its retail banking presence in Europe, planning to launch a digital bank in Germany by late 2024 or early 2025. This move signifies the bank's commitment to tapping into the European retail banking and adapting to the increasing demand for digital banking services.
• In June 2023, as per Zee Business Research, Bajaj Finserv announced the launch of a mutual fund business in June 2023, the non-financial banking company get SEBI’s approval for its MF business, and the business operated under the Bajaj Finserv Mutual Fund.
• In June 2023, India’s leading financial institutions were awarded as the best digital bank “DBS Bank India” announced the launch of the DBS Vantage card. The metal card comes with benefits like fine dining, travel, and complimentary sessions of premium places.
• In May 2023, Wio Bank, a digital platform banking platform entered in a collaboration with the Abu Dhabi Development Company (ADQ), First Abu Dhabi Bank (FAB), Etisalat, and Alpha Dhabi Holding planning to launch its retail proposition by the end of H1 2023.

Chapter 1: Introduction
 1.1 Scope and Coverage

Chapter 2:Executive Summary

Chapter 3: Market Landscape
 3.1 Market Dynamics
  3.1.1 Drivers
  3.1.2 Restraints
  3.1.3 Opportunities
  3.1.4 Challenges
 3.2 Market Trend Analysis
 3.3 PESTLE Analysis
 3.4 Porter's Five Forces Analysis
 3.5 Industry Value Chain Analysis
 3.6 Ecosystem
 3.7 Regulatory Landscape
 3.8 Price Trend Analysis
 3.9 Patent Analysis
 3.10 Technology Evolution
 3.11 Investment Pockets
 3.12 Import-Export Analysis

Chapter 4: Retail Banking Market by Function
 4.1 Retail Banking Market Snapshot and Growth Engine
 4.2 Retail Banking Market Overview
 4.3 Bank Account Opening
  4.3.1 Introduction and Market Overview
  4.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.3.3 Key Market Trends, Growth Factors and Opportunities
  4.3.4 Bank Account Opening: Geographic Segmentation Analysis
 4.4 Deposits and Withdrawals
  4.4.1 Introduction and Market Overview
  4.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.4.3 Key Market Trends, Growth Factors and Opportunities
  4.4.4 Deposits and Withdrawals: Geographic Segmentation Analysis
 4.5 Debit and Credit Card Issuance
  4.5.1 Introduction and Market Overview
  4.5.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.5.3 Key Market Trends, Growth Factors and Opportunities
  4.5.4 Debit and Credit Card Issuance: Geographic Segmentation Analysis
 4.6 Investment and Insurance
  4.6.1 Introduction and Market Overview
  4.6.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.6.3 Key Market Trends, Growth Factors and Opportunities
  4.6.4 Investment and Insurance: Geographic Segmentation Analysis

Chapter 5: Retail Banking Market by End User
 5.1 Retail Banking Market Snapshot and Growth Engine
 5.2 Retail Banking Market Overview
 5.3 Individuals
  5.3.1 Introduction and Market Overview
  5.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.3.3 Key Market Trends, Growth Factors and Opportunities
  5.3.4 Individuals: Geographic Segmentation Analysis
 5.4 Businesses
  5.4.1 Introduction and Market Overview
  5.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.4.3 Key Market Trends, Growth Factors and Opportunities
  5.4.4 Businesses: Geographic Segmentation Analysis

Chapter 6: Retail Banking Market by Type
 6.1 Retail Banking Market Snapshot and Growth Engine
 6.2 Retail Banking Market Overview
 6.3 Commercial Banks
  6.3.1 Introduction and Market Overview
  6.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  6.3.3 Key Market Trends, Growth Factors and Opportunities
  6.3.4 Commercial Banks: Geographic Segmentation Analysis
 6.4 Rural Banks
  6.4.1 Introduction and Market Overview
  6.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  6.4.3 Key Market Trends, Growth Factors and Opportunities
  6.4.4 Rural Banks: Geographic Segmentation Analysis

Chapter 7: Company Profiles and Competitive Analysis
 7.1 Competitive Landscape
  7.1.1 Competitive Benchmarking
  7.1.2 Retail Banking Market Share by Manufacturer (2023)
  7.1.3 Industry BCG Matrix
  7.1.4 Heat Map Analysis
  7.1.5 Mergers and Acquisitions
  
 7.2 JPMORGAN CHASE (UNITED STATES)
  7.2.1 Company Overview
  7.2.2 Key Executives
  7.2.3 Company Snapshot
  7.2.4 Role of the Company in the Market
  7.2.5 Sustainability and Social Responsibility
  7.2.6 Operating Business Segments
  7.2.7 Product Portfolio
  7.2.8 Business Performance
  7.2.9 Key Strategic Moves and Recent Developments
  7.2.10 SWOT Analysis
 7.3 BANK OF AMERICA (UNITED STATES)
 7.4 WELLS FARGO (UNITED STATES)
 7.5 CITIBANK (UNITED STATES)
 7.6 HSBC (UNITED KINGDOM)
 7.7 BNP PARIBAS (FRANCE)
 7.8 DEUTSCHE BANK (GERMANY)
 7.9 SANTANDER (SPAIN)
 7.10 OTHER ACTIVE PLAYERS

Chapter 8: Global Retail Banking Market By Region
 8.1 Overview
 8.2. North America Retail Banking Market
  8.2.1 Key Market Trends, Growth Factors and Opportunities
  8.2.2 Top Key Companies
  8.2.3 Historic and Forecasted Market Size by Segments
  8.2.4 Historic and Forecasted Market Size By Function
  8.2.4.1 Bank Account Opening
  8.2.4.2 Deposits and Withdrawals
  8.2.4.3 Debit and Credit Card Issuance
  8.2.4.4 Investment and Insurance
  8.2.5 Historic and Forecasted Market Size By End User
  8.2.5.1 Individuals
  8.2.5.2 Businesses
  8.2.6 Historic and Forecasted Market Size By Type
  8.2.6.1 Commercial Banks
  8.2.6.2 Rural Banks
  8.2.7 Historic and Forecast Market Size by Country
  8.2.7.1 US
  8.2.7.2 Canada
  8.2.7.3 Mexico
 8.3. Eastern Europe Retail Banking Market
  8.3.1 Key Market Trends, Growth Factors and Opportunities
  8.3.2 Top Key Companies
  8.3.3 Historic and Forecasted Market Size by Segments
  8.3.4 Historic and Forecasted Market Size By Function
  8.3.4.1 Bank Account Opening
  8.3.4.2 Deposits and Withdrawals
  8.3.4.3 Debit and Credit Card Issuance
  8.3.4.4 Investment and Insurance
  8.3.5 Historic and Forecasted Market Size By End User
  8.3.5.1 Individuals
  8.3.5.2 Businesses
  8.3.6 Historic and Forecasted Market Size By Type
  8.3.6.1 Commercial Banks
  8.3.6.2 Rural Banks
  8.3.7 Historic and Forecast Market Size by Country
  8.3.7.1 Bulgaria
  8.3.7.2 The Czech Republic
  8.3.7.3 Hungary
  8.3.7.4 Poland
  8.3.7.5 Romania
  8.3.7.6 Rest of Eastern Europe
 8.4. Western Europe Retail Banking Market
  8.4.1 Key Market Trends, Growth Factors and Opportunities
  8.4.2 Top Key Companies
  8.4.3 Historic and Forecasted Market Size by Segments
  8.4.4 Historic and Forecasted Market Size By Function
  8.4.4.1 Bank Account Opening
  8.4.4.2 Deposits and Withdrawals
  8.4.4.3 Debit and Credit Card Issuance
  8.4.4.4 Investment and Insurance
  8.4.5 Historic and Forecasted Market Size By End User
  8.4.5.1 Individuals
  8.4.5.2 Businesses
  8.4.6 Historic and Forecasted Market Size By Type
  8.4.6.1 Commercial Banks
  8.4.6.2 Rural Banks
  8.4.7 Historic and Forecast Market Size by Country
  8.4.7.1 Germany
  8.4.7.2 UK
  8.4.7.3 France
  8.4.7.4 Netherlands
  8.4.7.5 Italy
  8.4.7.6 Russia
  8.4.7.7 Spain
  8.4.7.8 Rest of Western Europe
 8.5. Asia Pacific Retail Banking Market
  8.5.1 Key Market Trends, Growth Factors and Opportunities
  8.5.2 Top Key Companies
  8.5.3 Historic and Forecasted Market Size by Segments
  8.5.4 Historic and Forecasted Market Size By Function
  8.5.4.1 Bank Account Opening
  8.5.4.2 Deposits and Withdrawals
  8.5.4.3 Debit and Credit Card Issuance
  8.5.4.4 Investment and Insurance
  8.5.5 Historic and Forecasted Market Size By End User
  8.5.5.1 Individuals
  8.5.5.2 Businesses
  8.5.6 Historic and Forecasted Market Size By Type
  8.5.6.1 Commercial Banks
  8.5.6.2 Rural Banks
  8.5.7 Historic and Forecast Market Size by Country
  8.5.7.1 China
  8.5.7.2 India
  8.5.7.3 Japan
  8.5.7.4 South Korea
  8.5.7.5 Malaysia
  8.5.7.6 Thailand
  8.5.7.7 Vietnam
  8.5.7.8 The Philippines
  8.5.7.9 Australia
  8.5.7.10 New Zealand
  8.5.7.11 Rest of APAC
 8.6. Middle East & Africa Retail Banking Market
  8.6.1 Key Market Trends, Growth Factors and Opportunities
  8.6.2 Top Key Companies
  8.6.3 Historic and Forecasted Market Size by Segments
  8.6.4 Historic and Forecasted Market Size By Function
  8.6.4.1 Bank Account Opening
  8.6.4.2 Deposits and Withdrawals
  8.6.4.3 Debit and Credit Card Issuance
  8.6.4.4 Investment and Insurance
  8.6.5 Historic and Forecasted Market Size By End User
  8.6.5.1 Individuals
  8.6.5.2 Businesses
  8.6.6 Historic and Forecasted Market Size By Type
  8.6.6.1 Commercial Banks
  8.6.6.2 Rural Banks
  8.6.7 Historic and Forecast Market Size by Country
  8.6.7.1 Turkey
  8.6.7.2 Bahrain
  8.6.7.3 Kuwait
  8.6.7.4 Saudi Arabia
  8.6.7.5 Qatar
  8.6.7.6 UAE
  8.6.7.7 Israel
  8.6.7.8 South Africa
 8.7. South America Retail Banking Market
  8.7.1 Key Market Trends, Growth Factors and Opportunities
  8.7.2 Top Key Companies
  8.7.3 Historic and Forecasted Market Size by Segments
  8.7.4 Historic and Forecasted Market Size By Function
  8.7.4.1 Bank Account Opening
  8.7.4.2 Deposits and Withdrawals
  8.7.4.3 Debit and Credit Card Issuance
  8.7.4.4 Investment and Insurance
  8.7.5 Historic and Forecasted Market Size By End User
  8.7.5.1 Individuals
  8.7.5.2 Businesses
  8.7.6 Historic and Forecasted Market Size By Type
  8.7.6.1 Commercial Banks
  8.7.6.2 Rural Banks
  8.7.7 Historic and Forecast Market Size by Country
  8.7.7.1 Brazil
  8.7.7.2 Argentina
  8.7.7.3 Rest of SA

Chapter 9 Analyst Viewpoint and Conclusion
9.1 Recommendations and Concluding Analysis
9.2 Potential Market Strategies

Chapter 10 Research Methodology
10.1 Research Process
10.2 Primary Research
10.3 Secondary Research