What Fueled The Previous Growth In The Retail Banking Market?
The retail banking market has seen considerable growth due to a variety of factors.
• The retail banking market has seen strong growth in recent years. It is expected to increase from $1979.62 billion in 2024 to $2118.87 billion in 2025, at a compound annual growth rate (CAGR) of 7.0%.
This growth is driven by greater investments in cybersecurity, the growing use of mobile banking apps, personalized banking services, and regulatory adjustments.
What Can Be Expected from the Retail Banking Market Size?
The retail banking market is expected to maintain its strong growth trajectory in upcoming years.
• The retail banking market is expected to grow to $2754.21 billion by 2029 at a CAGR of 6.8%.
This growth is driven by the adoption of open banking standards, a focus on improving customer experience, sustainability initiatives, the integration of digital and physical banking experiences, and the transition to cloud-based infrastructures. Trends include blockchain adoption, innovative loan products, advanced security features, biometric authentication, and contactless payments.
What Are the Critical Driver Fuelling The Retail Banking Market's Growth?
The anticipated growth of the retail banking market can be attributed to the increasing use of online and mobile banking. This term refers to the completion of financial transactions through internet platforms and mobile applications, eliminating the need for physical bank visits. There have been significant advancements in technology, which have increased both the functionality and attractiveness of these platforms. Online and mobile banking offers a wide range of features such as mobile check deposits, fund transfers with a simple click, and advanced security measures making these platforms appealing. By providing consumers with easy and efficient ways to manage their finances, these platforms increase customer satisfaction and extend traditional retail banking services' reach. A recent survey conducted by MX Technologies in April 2022, using a sample of 1,002 American adults, revealed that 68% of individuals use mobile applications for account access and management, with higher usage rates reported among the younger population. Furthermore, 72% of the surveyed individuals prefer dealing with their accounts online or via mobile apps. When broken down by age groups, millennials lead the way in their preference for online and mobile banking at 89%, followed closely by Gen Z at 84%. As a result, the increasing adoption of online and mobile banking is fueling the expansion of the retail banking market.
How Is The Retail Banking Market segmented?
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
Subsegments:
1) By Public Sector Banks: Nationalized Banks, Government-Owned Banks
2) By Private Sector Banks: Domestic Private Banks, International Private Banks
3) By Foreign Banks: Branches Of Foreign Banks, Representative Offices Of Foreign Banks
4) By Community Development Banks: Local Community Banks, Microfinance Banks
5) By Non-Banking Financial Companies (NBFC): Asset Finance Companies (AFCs), Loan Companies, Investment Companies, Microfinance Institutions (MFIs)
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What Trends Are Shaping The Retail Banking Market?
Leading entities in the retail banking industry are integrating generative artificial intelligence into their core banking solutions to improve operational efficiency. The concept of integrating generative AI into banking solutions involves using advanced AI techniques, especially generative models, to improve and innovate various banking operations and services. In May 2024, Newgen Software, a globally recognized provider of low-code digital transformation platforms, released LumYn, a pioneering Gen AI-powered hyper-personalization platform specifically catered to the banking industry. LumYn smartly combines predictive analytics with robust conversational AI to facilitate seamless coordination between corporate users and consumer data. The platform, which is grounded in datasets and similar behavioral patterns across all retail banks, provides a low-code environment so banks can conveniently design solutions adapted to their unique business needs. The platform accurately identifies behavioral segments based on a customers' spending habits and lifestyle, thereby optimizing customer lifetime value.
Who Are the Key Players In The Retail Banking Market?
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
What Is The Most Dominant Region In The Retail Banking Market?
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 regions covered in the retail banking market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
