Retail Banking Market Size - By Types (Large Bank, Community Bank, Online Bank, Regional Rural Bank, Post Office), By Service (Current Account, Saving Account, Debit Card, Credit Card, Loan) & Forecast, 2023 - 2032
Published Date: March - 2025 | Publisher: MIR | No of Pages: 240 | Industry: Media and IT | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationRetail Banking Market Size
Retail Banking Market accounted for USD 1.94 trillion in 2022 and is forecast to reach a CAGR of more than 5% during 2023-2032. Online banks are substantially leading the retail banking market. Online banks, through their simple user interfaces, convenience, and cost-saving operations, have attracted more and more customers. Online banks provide greater interest on saving accounts and lesser charges, so the traditional banks also need to boost their online activities.
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Artificial Intelligence (AI) is powering the retail banking sector. AI-based chatbots improve customer service, machine learning processes data for customized recommendations, and predictive analytics estimate credit risk. Processes are automated, saving costs, while fraud detection is enhanced. AI-driven insights help banks make data-led decisions, enhancing customer experiences and operational efficiency, thus growing the market because it is addressing changing customer expectations and technology improvements.
| Report Attribute | Details |
|---|---|
| Base Year | 2022 |
| Retail Banking Market Size in 2022 | USD 1.94 Trillion |
| Forecast Period | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR | 5% |
| 2032 Value Projection | USD 3.15 Trillion |
| Historical Data for | 2018 to 2022 |
| No. of Pages | 200 |
| Tables, Charts & Figures | 227 |
| Segments covered | Type, Service |
| Growth Drivers |
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| Pitfalls & Challenges |
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What are the growth opportunities in this market?
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Disruptors in the retail banking sector come from emerging fintech companies. These nimble new entrants use technology to provide innovative and sometimes less expensive alternatives. Conventional banks have to respond by investing in digital transformation and providing similar services to keep their customers. The difficulty is balancing the fast-evolving world of banking services with customer trust and regulatory requirements, as customers seek out alternatives from these fintech innovators.
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COVID-19 negatively affected the retail banking. Lockdowns and economic uncertainty caused lower consumer spending, reducing lending and credit card usage. Branch closures interrupted traditional banking, boosting the transition to digital platforms. The pandemic also raised concerns about loan defaults and affected the profitability of banks since low-interest rates impacted margins. Growing demand for digital services and financial hardships brought on by the pandemic compelled banks to be agile enough to respond quickly to the shifts.
Retail Banking Market Trends
Digital transformation is a major trend in the retail banking sector since banks are pouring more and more investments into technology to make experiences better for their customers and for streamlining. It entails taking up online and mobile banking offerings, AI chatbots for customer care, and mobile payment capabilities. Conventional banks are upgrading their infrastructure to rival digital-born banks and fintech players, making it easy and secure for customers to access services, ultimately transforming the industry to be more technology-driven and customer-centric.
Omnichannel banking is a new trend in the retail banking sector, which is a move towards offering an integrated, seamless customer experience across channels. It allows customers to start and finish banking transactions through physical branches, websites, mobile applications, and others without interruption. Banks are directing their efforts toward providing seamless service so that customers can move between channels seamlessly, building convenience and customer happiness. This trend recognizes the changing needs of technology-endowed consumers and the need to reach them wherever they are in their banking experience.
Retail Banking Market Analysis
Discover more about the dominant segments defining this market
On the basis of types, the large bank segment held approximately 30% market share in 2022, owing to its capital, extensive network, and ability to invest in digitization. For example, in October 2023 JP Morgan and Mastercard have launched their Pay-by-Bank solution, allowing customers to settle bills directly from their bank accounts through conventional ACH banking channels. With Mastercard's open banking technology, the collaboration will upgrade JP Morgan's ACH capabilities, providing customers with a more convenient, secure, and efficient bill payment experience. Advanced online and mobile banking services, new products, and personalized experiences can be offered by such banks.
Discover more about the most important segments driving this market
By service, the saving account segment held a market share of approximately 27% in 2022 due to its popularity as a core financial product. Savings accounts give customers a secure location to keep their money and earn interest. With a growing level of financial literacy, people look for secure ways to build their savings. Retail banks provide competitive interest rates, easy-to-use digital interfaces, and promotional rewards to draw in savers, driving the growth of the savings account segment within the market.
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The North America region accounted for around 25% market share in the retail banking market in 2022, owing to strong economic conditions and higher use of digital banking. The financial institutions of the region are investing in high-end technology, delivering customers' online and mobile banking facilities seamlessly. Additionally, friendly regulatory policies and a competitive environment are fueling innovation and customer-oriented strategies. All these, along with high attention to cybersecurity, are broadening the retail banking industry, turning North America into an important center for banking services.
For instance, in October 2023 TD Bank Group has been recognized as the "Best Consumer Digital Bank in North America" for the third consecutive year in Global Finance's World's Best Digital Banks Awards 2023. This achievement is attributed to TD's outstanding performance in multiple categories, such as innovation, online product offerings, and regional excellence across North America.
Retail Banking Market Share
The major players operating in the Retail Banking industry are-
- JPMorgan Chase & Co.
- Bank of America
- Wells Fargo & Co.
- Citigroup Inc.
- TD Bank Group
- HSBC Holdings plc
- PNC Financial Services Group, Inc
JPMorgan Chase & Co. and Bank of America are major players in the retail banking business due to their extensive networks, large customer bases, and substantial financial resources. They offer a wide range of retail banking services, including savings accounts, loans, credit cards, and digital banking platforms catering to diverse customer needs. Their competitive advantage lies in their ability to invest heavily in technology and innovation, enhancing customer experiences and retaining their positions as industry leaders.
Retail Banking Industry News
- 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.
This retail banking market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments
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By Type
- Large Bank
- Community Bank
- Online Bank
- Regional Rural Bank
- Post Office
By Service
- Current Account
- Saving Account
- Debit Card
- Credit Card
- Loan
- Others
The above information is provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- Southeast Asia
- ANZ
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- UAE
- Saudi Arabia
- South Afric
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