Retail Banking Market Size, Share, Growth, and Industry Analysis by Type (Software and Service) By Application (Micro Enterprises, Small and Medium Enterprises, and Large Enterprises), Regional Insights, and Forecast To 2031

Updated On: 01 April 2024

RETAIL BANKING MARKET REPORT OVERVIEW

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The global retail banking market size was USD 6573.0 million in 2021 and is projected to touch USD 16182.56 million by 2031 at CAGR 9.43% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with digital notes experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels.

The term "retail banking," sometimes known as "consumer banking," refers to the traditional mass-market practice of individuals using regional offices of larger commercial banks. Retail banking is a service that offers consumers financial options for handling their finances, getting credit, and making secure deposits on behalf of individual retail clients. Retail banking operations are typically managed through community development, private and public banks, and Non-Banking Financial Companies (NBFCs). They offer services like mortgages, house loans, and transactional accounts, as well as debit, credit, and ATM cards.

It provides a number of advantages, including affordable interest rates, quick customer service, and simple credit loan options. The individual customer is the major priority in retail banking. For each individual retail client, retail banking strives to provide a one-stop shop for as many financial services as possible. Retail banking firms are altering their business procedures to cut down on operating expenses. Customers' expectations of various goods and services would rise further as a result. In a demand-driven economy, retail banks only need to spend a minimal amount on marketing because retail deposits are generally steady. Demand for retail banking is also fueled by rising government mandates that every person in many nations have access to at least one bank account.

COVID-19 Impact: Halt on Manufacturing Operations to Slower Market Growth  

Globally, the COVID-19 epidemic has sparked social upheaval and economic instability. The closure of manufacturing and industrial facilities has increased the unemployment rate globally. It has been extremely challenging for end-use organizations to invest in blockchain-based retail solutions due to the pandemic's endurance. Organizations employ solutions to enhance supply chain transparency and improve their present business procedures. The COVID-19 had very little effect on the retail banking. A number of international industries have also started using distributed ledger technology and smart contracts, enabling companies of all sizes, including SMEs, to protect supply chain records and improve supply chain transparency.

LATEST TRENDS

"Improved Monitoring Capabilities to Boost Market Growth"

Over the upcoming years, the retail banks' increased emphasis on customer connectedness, improved monitoring capabilities, and the provision of easy credit access is anticipated to fuel the retail banking market. The study on the global retail banking market offers a comprehensive analysis of the industry. The retail banks' improved monitoring tools and quick lending access are so effective. Banks are putting more of an emphasis on improving the customer experience by offering better interest rates and more interaction with the client.

RETAIL BANKING MARKET SEGMENTATION

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• By Type Analysis

As per the type, the market is classified as follows: Software and Service. The retail banking market with the highest CAGR is predicted to be software during the foreseeable period. The issues can be linked to a number of common software program that retail banks provide, including solutions for processing payments, cards, checks, and Internet commerce.

• By Application Analysis

Based on application, the market is segmented as follows: Micro Enterprises, Small and Medium Enterprises, and Large Enterprises. The widespread use of all products by micro enterprises are anticipated to drive retail banking market expansion.

DRIVING FACTORS

"Rising Product Offerings for Retail Customers to Facilitate Market Development"

Rising product offerings for retail customers are a major contributor to the global retail banking market's revenue growth. Investment-related services such wealth management, retirement planning, financial advice with product options, brokerage accounts, and high net worth individual products or private banking are also becoming more prevalent. Banks may be able to lower operational costs, take advantage of greater product offerings online, and improve client connectedness as a result of the expansion of digital and increased preference for using channels like internet banking and mobile banking. Services like rapid approval, high interest over savings, cheap maintenance fees, and digital onboarding with video KYC all support retail banking market growth.

"Improved Service Delivery to Promote Industry Progress"

Rising working-age populations, bettering economic conditions, and more government investment in the banking sector are the main drivers influencing market revenue growth. Focusing on changing the business model to incorporate technology like artificial intelligence (AI), robotic process automation (RPA), Robo-advisors, and digital identification (ID) into business processes as well as bringing customer-centric models to enhance customer experience and earnings are factors expected to continue to open up lucrative business opportunities for major players and new entrants in the retail banking market. Additionally, consumers are switching to digital channels like online banking and mobile banking, which can be leveraged to improve service delivery and are anticipated to continue driving retail banking market growth.

RETAIL BANKING MARKET RESTRAINING FACTORS

"Rigorous Government Regulation to Hinder Market Growth"

There are some limitations and difficulties that may prevent the retail banking market from expanding. Retail banking market restrictions are likely to be caused by things like tightened regulations and an increase in large loan losses. The expansion of the global retail banking market is significantly constrained by a number of adverse circumstances. A number of challenges have arisen with the expansion of digital platforms in retail banking, including the need to find acceptable partners, manage data, and address concerns about cybersecurity and privacy. Other retail banking risk factors, such as rigorous government regulation and an increase in enormous loan deficits, are anticipated to considerably slow retail banking market expansion.

RETAIL BANKING MARKET REGIONAL INSIGHTS

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"Increase in Demand to Propel Market Progress in North America"

North American banks will hold the highest retail banking market share because they are heavily focused on innovation in new products, delivery methods, and analytics to increase bank efficiency through the creation of a customer-centric business model and proactive risk, regulation, and capital management. Since banks are heavily focused on innovation in new products, delivery channels, and analytics to increase bank efficiency by creating a customer-centric business model and proactively managing risk, regulations, and capital, the North American area is predicted to dominate the retail banking market.

KEY MARKET PLAYERS

"Market Players Focus on New Product Launches to Strengthen Market Position"

Leading players in the market are adopting various strategies to expand their presence in the market. These include R&D investments and the launch of new, technologically-advanced products in the market. Some companies are also adopting strategies such as partnerships, mergers, and acquisitions to strengthen their market position.   

List of Market Players Profiled

• Monzo (U.K)
• KeyBank (U.S.)
• TD Bank (U.S.)
• PNC Financial Services (U.S.)
• Citigroup Inc (U.S.)
• JP Morgan Chase and Co. (U.S.)
• Iam Bank (Kenya)
• Babb (Switzerland)
• Goldman Sachs (U.S.)
• ICBC (China)
• Revolut (U.K)
• Fidor Bank (Germany)
• BBandT Corporation (U.S.)
• Regions Bank (U.S.)
• China Merchants Bank (China)
• Ffrees (U.K)
• Suntrust Bank (U.S.)
• Barclays (U.K)
• Wells Fargo (U.S.)
• Bank of America (U.S.)
• Banco Santander (Spain)
• Atom Bank (U.K)
• N26 (Germany)
• Bank of China (China)
• Tandem (U.S.)
• US Bank (U.S.)
• China Construction Bank (China)
• Japan Post Bank (Japan)
• Agricultural Bank of China (China)
• Mitsubishi UFJ Financial Group (Japan)
• Zopa (U.K)
• BNP Paribas (France)
• Starling Bank (U.K)

REPORT COVERAGE

The report covers overall market aspects, including market segmentation based on its type and application. The report depicts a diverse group of participants that includes the market and the potential market leaders. Major factors that are expected to drive major growth in the market. The factors anticipated to expand the market share are also included in the report to offer market insights. The estimated growth of the market in the forecast period is also included in the report. The regional analysis is completed to explain the region's dominance in the global market. The factors hindering the growth of the market are discussed in detail. The SWOT analysis of the market is depicted in the report. It contains all-inclusive market details.