The retail banking market size has grown strongly in recent years, projected to increase from $1,854.58 billion in 2023 to $1,979.62 billion in 2024, reflecting a compound annual growth rate (CAGR) of 6.7%. This growth can be attributed to several factors, including increased investment in cybersecurity measures, the growing use of mobile banking apps, personalized banking services, an uptick in the use of voice assistants, and adjustments in regulatory frameworks. Over the next few years, the retail banking market size is expected to continue its strong growth, reaching $2,580.41 billion in 2028 at a CAGR of 6.9%. The forecasted growth is driven by the adoption of open banking standards, a focus on enhancing customer experience, sustainability initiatives, the integration of digital and physical banking experiences, and a shift towards cloud-based infrastructures. Major trends anticipated during this period include advancements in blockchain technology, innovative loan products, the implementation of advanced security features, biometric authentication methods, and the rise of contactless payment options.
Major Driver In The Retail Banking Market
The rise in online and mobile banking is expected to facilitate the growth of the retail banking market going forward. Online and mobile banking involve the use of internet platforms and mobile applications to perform financial transactions without needing to visit a bank branch. Technological advancements have greatly enhanced the functionality and appeal of online and mobile banking services, which now offer features such as mobile check deposits, instant fund transfers, and robust security measures that attract users. These services provide retail bankers with convenient, accessible, and efficient methods for customers to manage their finances, improving customer satisfaction and expanding the reach of traditional retail banking. For instance, in April 2022, a survey by MX Technologies, a US-based fintech company, revealed that 68% of American adults utilize mobile apps to manage their accounts, with younger generations showing higher usage rates. Moreover, 72% of respondents preferred managing their accounts online or via mobile apps, with millennials leading at 89% and Gen Z at 84%. Thus, the growth of online and mobile banking significantly drives the retail banking market.
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Retail Banking Market Competitive Landscape
Major companies operating in the retail banking market are JPMorgan Chase & Co., Bank of America Corporation, Banco Santander S.A., Wells Fargo & Company, HSBC Holdings plc, Citigroup Inc., Morgan Stanley, BNP Paribas, Goldman Sachs Group Inc., ING Group, Mitsubishi UFJ Financial Group Inc., UBS Group AG, Barclays PLC, Société Générale S.A., BBVA (Banco Bilbao Vizcaya Argentaria), Sumitomo Mitsui Financial Group Inc., Deutsche Bank AG, UniCredit S.p.A., Credit Agricole Group, Credit Suisse Group AG, Intesa Sanpaolo S.p.A., Lloyds Banking Group plc, Royal Bank of Scotland Group plc, Mizuho Financial Group Inc., Commonwealth Bank of Australia, CaixaBank S.A., ABN AMRO Group
Key Retail Banking Market Trend
Major companies in the retail banking market are developing core banking solutions integrated with generative artificial intelligence platforms to improve operational efficiency. A generative AI platform in banking solutions refers to the application of advanced AI techniques, particularly generative models, to enhance and innovate various banking services and operations. For example, in May 2024, Newgen Software, a leading global provider of low-code digital transformation platforms, launched LumYn, an innovative Gen AI-powered hyper-personalization platform specifically designed for the banking sector. LumYn combines predictive analytics with robust conversational AI, allowing corporate users to connect seamlessly with consumer data. Newgen's platform is built on datasets and comparable behavioral patterns across retail banks, enabling a low-code environment for banks to easily design and adapt solutions to their unique business needs. It generates precise behavioral segments based on client spending behaviors and lifestyles, maximizing customer lifetime value.
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Global Retail Banking Market Segmentation
The retail banking market covered in this report is segmented –
1) By Type: Public Sector Banks, Private Sector Banks, Foreign Banks, Community Development Banks, Non-Banking Financial Companies (NBFC)
2) By Service: Saving And Checking Account, Transactional Account, Personal Loan, Home Loan, Mortgages, Debit And Credit Cards, Automated Teller Machine (ATM) Cards, Certificates Of Deposits
3) By Application: Micro Enterprises, Small And Medium Enterprises, Large Enterprises
By Geography:The regions covered in the retail banking market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Asia-Pacific was the largest region in the retail banking market in 2023. North America is expected to be the fastest-growing region in the forecast period.
The Retail Banking Global Market Report 2024 furnishes information about the global retail banking market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
