The Retail Banking Market size is anticipated to expand at a CAGR of 6.0% from 2025 to 2031. Rising demand for personalized consulting services to drive the retail banking market growth.
Retail Banking Market Analysis
The retail banking market has experienced significant growth in recent years, driven by various factors such as technological advancements, changing customer preferences, regulatory reforms, and evolving market dynamics. This growth trend is expected to continue in the foreseeable future, propelled by several key drivers and trends. One of the primary drivers of growth in the retail banking market is technological innovation. The adoption of digital banking solutions, such as mobile banking apps, online account management platforms, and contactless payment options, has transformed the way customers interact with banks. These technologies have not only enhanced convenience for customers but have also enabled banks to streamline their operations, reduce costs, and improve efficiency. Furthermore, the rise of fintech companies and their innovative solutions has introduced new competition into the retail banking landscape. Fintech startups often specialize in niche areas such as peer-to-peer lending, robo-advisory services, and digital wallets, offering consumers alternative options to traditional banking services. As a result, traditional banks are under pressure to innovate and adapt to meet changing customer demands, driving further growth and evolution in the market.
Retail Banking Industry Overview
- Retail banking, also known as consumer banking or personal banking, offers financial services to individual consumers rather than enterprises. Customers can manage their money, get credit, and deposit money safely and securely when via retail banking services.
- In the United States of America, commercial banks are also called retail banks, and investment banks can only invest money in market operations. Retail banks offer a wide range of services to the public, such as bank accounts, fixed deposits, credit and debit cards, loans, etc. These services help people efficiently manage their finances. Retail banking services, like deposits and withdrawals, can be done both online and at the bank branch.
- Online retail banking has made it easier for individual consumers to avail of home loans, personal loans, car loans, open fixed and recurring deposits, transfer money, etc. However, the range of services and products offered could vary from bank to bank.
Strategic Insights
Retail Banking Market Drivers and Opportunities
Rising Demand for Personalized Consulting Services to Drive the Retail Banking Market
- Retail banks can improve their market position by taking advantage of the expansion prospects created by the need for individualized consultancy services. Retail clients are looking for more individualized services and customized financial solutions that meet their requirements and objectives. The need for individualized consultancy services drives retail banks' ability to offer more thorough and specialized financial planning and assistance.
- Banks may set themselves apart from rivals and forge closer bonds with clients by providing individualized consultations. Personalized consulting services are a factor in maintaining long-term client retention and loyalty. Customers are more inclined to stick with the bank and keep utilizing its goods and services when they get insightful guidance and experience results from individualized consultations.
Retail Banking Market Report Segmentation Analysis
- Based on type, the retail banking market is segmented into public sector banks, private sector banks, foreign banks, community development banks, non-banking financial companies (NBFC), and rural banks.
- The private sector banks segment is expected to hold a substantial retail banking market share in 2023 owing to their innovative products, operational efficiency, and strong customer focus. By utilizing contemporary technology, private sector banks can differentiate themselves as innovators in meeting evolving customer needs and draw in tech-savvy customers.
- Effective banking solutions, such as retail banking, yield lower interest rates, faster loan processing, and more efficient services, all of which contribute to increased client satisfaction. Thus, by helping them to traverse the constantly shifting financial landscape with agility, this focus on operational excellence helps private sector banks to remain at the forefront of providing efficient and customer-focused solutions.
Retail Banking Market Share Analysis by Geography
The scope of the retail banking market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. Asia Pacific (APAC) is experiencing rapid growth and is anticipated to hold a significant retail banking market share. The population of the area is large and expanding quickly, and the middle class and disposable income of the populace are both rising. The demand for banking services, such as savings accounts, loans, and investment products, has increased as a result of this demographic shift. In addition, the area has seen notable urbanization and economic growth, which has stimulated corporate expansion and financial activity. As a result, more financial services are required to accommodate both personal and business activities.
Retail Banking Market Report Scope
The " Retail Banking Market Analysis" was carried out based on type, service, and geography. In terms of type, the market is segmented into public sector banks, private sector banks, foreign banks, community development banks, non-banking financial companies (NBFC), and rural banks. Based on service, the retail banking market is segmented into saving and checking accounts, transactional accounts, loans, mortgages, debit and credit cards, and others. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the retail banking market. A few recent key market developments are listed below:
- In February 2024, Barclays Bank UK PLC agreed to acquire the retail banking business of Tesco and enter into an exclusive long-term partnership to offer Tesco branded credit cards, personal loans and deposits. Tesco’s retail banking customer base is broadly similar to Barclays UK’s existing customers and will complement its current business, as well as build on our existing UK strategic partnerships with other leading retail, consumer electronics, and loyalty program brands.
(Source: Barclays, Company Website)
- In January 2023, Societe Generale Group announced that it had completed the legal merger of its two French Retail Banking networks, Societe Generale and Crédit du Nord Group. SG is now the Group’s new French Retail Banking. The completion of the merger is accompanied by the implementation of a new relationship model, which will improve the quality of service provided to individual, business, and corporate customers and establish itself as a leading player in the French market in terms of savings, insurance and excellent solutions for businesses and professionals.
(Source: Societe Generale, Company Website)
Retail Banking Market Report Coverage & Deliverables
The market report on “Retail Banking Market Size and Forecast (2021–2031)”, provides a detailed analysis of the market covering below areas-
- Market size & forecast at global, regional, and country- level for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, recent developments.
- Detailed company profiles.
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Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
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to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The global retail banking market is expected to grow at a CAGR of 6.0 % during the forecast period 2024 - 2031.
Rising demand for digital banking service are the major factors that propel the global retail banking market.
Growing adoption of artificial intelligence and blockchain in retail banking, which is anticipated to play a significant role in the global retail banking market in the coming years.
The key players holding majority shares in the global retail banking market are BNP Paribas; Citigroup Inc.; HSBC India; JPMorgan Chase & Co. and Bank of America Corporation.
- BNP Paribas
- Citigroup Inc.
- HSBC India
- JPMorgan Chase and Co.
- Bank of America Corporation
- Barclays
- China Construction Bank
- Wells Fargo
- TD Bank Group
- The PNC Financial Services Group, Inc
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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