세계의 소매 뱅킹 시장 : 유형별, 서비스별, 지역별(2024-2031년)

Retail Banking Market Valuation - 2024-2031

A growing tech-savvy consumer base is widening the use of mobile banking, AI-powered services, and seamless online platforms to offer personalized financial experiences. This is growing need for integration of advanced technologies in the banking sector is expected to drive the Retail Banking Market to reach a valuation of USD 3.34 Trillion over the forecast 2031, surpassing the revenue of USD 2.05 Trillion valued in 2023.

Similarly, banking-based apps and other financial clause-related solutions are developed in compliance with stringent regulations, thereby building trust and data-driven innovation. The inclusion of advanced technologies such as blockchain, near-field communication, and artificial intelligence in the banking sector is projected to enable the Retail Banking Market to grow at a CAGR of 6.3% from 2024 to 2031.

Retail Banking Market: Definition/ Overview

Retail banking, also known as personal or consumer banking, is the foundation of individual financial management. It includes providing vital financial services directly to the general public, rather than companies or other institutions. This comprises a wide range of services such as daily transaction management, loan and mortgage security, credit and payment solutions, financial planning and investment opportunities, and digital banking experiences.

Furthermore, retail banking plays an important role in different industries by facilitating trade and commerce, empowering entrepreneurship, promoting financial inclusion, and boosting real estate markets. It remains a crucial component of our financial ecosystem, evolving and adapting to meet the ever-changing demands of individuals and the larger economy.

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How will the Retail Banking Market Fare During the Forecast Period?

Growing trust and awareness regarding the retail banking is attracting demographic groups, increasing the adoption of retail banking. Additionally, the rise in disposable income is creating a strong demand for a variety of financial services such as loans, mortgages, and investments in the Retail Banking Market.

Increasing urban populations boost the demand for mobile banking and digital financial services, as people migrate to cities in search of better job prospects and economic advancement. As a result of better healthcare and a decline in birth rates, this factor in turn drives the demand for specialist services such as asset management and retirement planning.

Growing client demands for convenient and individualized banking experiences fuel competition, pushing established banks to innovate and raise service standards, starting a never-ending cycle of innovation and improvement to bolster the demand for retail banking in the market.

Furthermore, government initiatives oriented toward consumer protection and financial inclusion further impact the regulatory environment.

What are the Primary Challenges Faced by the Retail Banking Market?

Neobanks and fintech companies are gaining traction by providing modern digital solutions, competitive interest rates, and seamless user experiences. As a result, the flexible and customer-focused mindset of these emerging businesses presents numerous problems for traditional banks, thereby serving a challenge in the Retail Banking Market.

Simultaneously, to keep up with the rapidly changing demands of their customers, banks are being forced to invest heavily in digital transformation projects and technology infrastructure. Thus, for traditional banks to remain relevant and competitive in the digital age, they invest in modern innovations like chatbots driven by artificial intelligence and personalized financial solutions which pose a significant challenge to the market of retail banking.

Furthermore, the decrease in net interest margins due to low-interest rates has a direct impact on profitability and reduces revenue from traditional lending products, leading banks to explore alternative revenue streams and financial strategies.

Category-Wise Acumens

In What ways do Technological Innovations Influence the Retail Banking Strategies of Private Sector Banks?

According to VMR Analysis, the Private sector bank is estimated to hold the largest market share in the type segment during the forecast period owing to their innovative products, operational efficiency, and strong customer focus. Using modern technologies helps private sector banks stand out as leaders in fulfilling changing client expectations thereby attracting tech-savvy customers.

Increased client satisfaction is a result of effective banking solutions like retail banking, which also leads to quicker loan processing, more efficient services, and affordable interest rates. Thus, this focus on operational excellence enables private sector banks to stay at the forefront of offering effective and customer-focused solutions by enabling them to navigate the ever-changing financial landscape with adaptability.

Private banks aim for individualized and attentive service by making significant investments in customer service and relationship management. As a result, by establishing a solid foundation for customer relationships, private banks not only increase customer loyalty but also establish themselves as reliable financial partners, thereby strengthening their market position.

Furthermore, private sector banks, like JPMorgan Chase, Bank of America, HSBC, and BNP Paribas, are the dominant players in developed economies like those in North America, Europe, and Australia. These banks are using creative approaches to promote financial inclusion.

What Factors Drive the Savings and Checking Account Services in the Retail Banking Market?

The savings and checking account segment is estimated to grow at the highest CAGR in the Retail Banking Market during the forecast period. The rising use of saving and checking accounts for regular transactions like bill payments, purchases, and wage receipts is projected to provide a secure and dependable platform for managing funds. In addition to this, this account will give unbanked people access to the official financial system, thereby encouraging savings and making it easier for them to access more extensive financial services.

Savings and checking accounts are streamlining everyday money management by providing access to money and enabling transactions via a variety of channels, including debit cards, ATMs, online banking, and mobile payments. This is likely to surge the demand for this service in the Retail Banking Market.

Furthermore, the widespread use of mobile banking, internet platforms, digital wallets, and contactless payments improves convenience and accessibility, allowing for seamless account administration at any time anywhere, creating huge market demand.

Country/Region-wise Acumens

How is the Evolving Digital Landscape Influencing the Dynamics of the Retail Banking Market in the Asia Pacific Region?

According to VMR Analyst, Asia Pacific is estimated to dominate the Retail Banking Market during the forecast period owing to the financial empowerment of a burgeoning middle class along with the broad usage of digital technologies. Innovative alternatives, such as microfinance and agent banking, are gaining popularity as ways to bridge the gap and provide banking services to previously underserved regions, bolstering the Retail Banking Market in Asia Pacific. With the initiative to target unbanked populations in rural areas, financial inclusion compels the narrative of growth and innovation.

Furthermore, China, India, and Japan are among the key nations driving this shift, investing heavily in mobile banking infrastructure and establishing strategic connections within the fintech ecosystem. In China, for example, Alibaba's MYbank and Tencent's WeBank are reshaping traditional banking standards and redefining client expectations.

What Impact do Strategic Partnerships and Collaborations have on the Expansion Strategies of Retail Banks in the North American Market?

In a mature market with fierce rivalry in North America, the retail banking sector is defined by mergers and acquisitions within the banking industry. As a result of these consolidations, fewer but larger institutions with a wider range of products are currently emerging. The drive for economies to scale, operational efficiency, and service portfolio diversification is the driving force behind this development. Even while they continue to dominate the financial industry, well-established banks like Bank of America and JPMorgan Chase are up against faster-growing new banks like Varo and Chime.

Furthermore, the market has strategically shifted toward automation and personalization in response to this competitive environment. To detect fraud, manage risk, and provide individualized product suggestions that are tailored to each customer's needs, the use of artificial intelligence (AI) is a trend in the North American region to compete.

Competitive Landscape

While the retail banking industry's future is yet unknown, one thing is certain, there will be tough competition for client loyalty. Players who can adapt to shifting consumer expectations, use technology efficiently, and value ease and personalization are likely to prosper in this ever-changing landscape.

Some of the prominent players operating in the Retail Banking Market include:

JPMorgan Chase & Co., Bank of America, Wells Fargo, Citigroup, HSBC, BNP Paribas, Mitsubishi UFJ Financial Group, Industrial & Commercial Bank of China (ICBC), China Construction Bank (CCB), Bank of China, Agricultural Bank of China (ABC), Barclays, Standard Chartered, Deutsche Bank, Credit Agricole, State Bank of India (SBI), HDFC Bank, Kotak Mahindra Bank, IDFC FIRST Bank, and ICICI Bank.

Latest Developments:

In October 2023, JPMorgan Chase collaborated with Amazon on Embedded Banking. Under the agreement, JPMorgan Chase will provide banking services such as checking accounts, credit cards, and bill pay right within the Amazon app. This implies that consumers can easily manage their finances without leaving the comfortable Amazon environment.

In October 2023, Citigroup invested in a cybersecurity start-up to bolster its defenses. With cyberattacks constituting a significant threat to the banking sector, Citigroup invested in a cybersecurity firm to shore up its defenses. This expenditure indicates increased awareness of cybersecurity dangers and the necessity for strong security measures to safeguard sensitive consumer data and financial assets.

In September 2023, HSBC Launched an AI-powered chatbot to Improve Customer Service. HSBC's new AI chatbot, "Amy," is designed to answer client questions and provide basic banking service 24 hours a day, seven days a week. Amy uses natural language processing and machine learning to interpret client inquiries and provide appropriate responses. This effort highlights how banks use AI to provide more efficient and tailored client service.

In September 2023, Bank of America's Education Initiative was centered on Financial Inclusion. Bank of America recognized the need for financial literacy and created a new effort to deliver financial education to low-income communities. This program consists of workshops, online tools, and one-on-one counselling sessions designed to provide individuals with the knowledge and skills they need to effectively manage their finances.

In January 2023, the UK Implemented Open Banking Regulations. Open banking is predicted to promote competition and propel the development of more user-centric financial solutions. The UK's open banking regulations are a game-changer for the financial services industry. They permit third-party providers to access customer banking data with consent, opening the door for creative financial products and services catered to individual needs.

TABLE OF CONTENTS

1 INTRODUCTION OF GLOBAL RETAIL BANKING MARKET

• 1.1 Overview of the Market
• 1.2 Scope of Report
• 1.3 Assumptions

2 EXECUTIVE SUMMARY

3 RESEARCH METHODOLOGY OF VERIFIED MARKET RESEARCH

• 3.1 Data Mining
• 3.2 Validation
• 3.3 Primary Interviews
• 3.4 List of Data Sources

4 GLOBAL RETAIL BANKING MARKET OUTLOOK

• 4.1 Overview
• 4.2 Market Dynamics
  • 4.2.1 Drivers
  • 4.2.2 Restraints
  • 4.2.3 Opportunities
• 4.3 Porters Five Force Model
• 4.4 Value Chain Analysis
• 4.5 Regulatory Framework

5 GLOBAL RETAIL BANKING MARKET, BY TYPE

• 5.1 Overview
• 5.2 Public Sector Banks
• 5.3 Private Sector Banks
• 5.4 Foreign Banks
• 5.5 Community Development Banks
• 5.6 Non-Banking Financial Companies (NBFC)
• 5.7 Rural Banks
• 5.8 Others

6 GLOBAL RETAIL BANKING MARKET, BY SERVICE

• 6.1 Overview
• 6.2 Saving and Checking Account
• 6.3 Transactional Account
• 6.4 Loan
• 6.5 Mortgages
• 6.6 Debit and Credit Cards
• 6.7 ATM Cards
• 6.8 Certificates of Deposits
• 6.9 Others

7 GLOBAL RETAIL BANKING MARKET, BY GEOGRAPHY

• 7.1 Overview
• 7.2 North America
  • 7.2.1 U.S.
  • 7.2.2 Canada
  • 7.2.3 Mexico
• 7.3 Europe
  • 7.3.1 Germany
  • 7.3.2 U.K.
  • 7.3.3 France
  • 7.3.4 Rest of Europe
• 7.4 Asia Pacific
  • 7.4.1 China
  • 7.4.2 Japan
  • 7.4.3 India
  • 7.4.4 Rest of Asia Pacific
• 7.5 Latin America
  • 7.5.1 Brazil
  • 7.5.2 Argentina
• 7.6 Rest of the World

8 GLOBAL RETAIL BANKING MARKET COMPETITIVE LANDSCAPE

• 8.1 Overview
• 8.2 Company Market Share
• 8.3 Vendor Landscape
• 8.4 Key Development Strategies

9 COMPANY PROFILES

• 9.1 JPMorgan Chase & Co.
  • 9.1.1 Overview
  • 9.1.2 Financial Performance
  • 9.1.3 Product Outlook
  • 9.1.4 Key Developments
• 9.2 Bank of America
  • 9.2.1 Overview
  • 9.2.2 Financial Performance
  • 9.2.3 Product Outlook
  • 9.2.4 Key Developments
• 9.3 Wells Fargo
  • 9.3.1 Overview
  • 9.3.2 Financial Performance
  • 9.3.3 Product Outlook
  • 9.3.4 Key Developments
• 9.4 Citigroup
  • 9.4.1 Overview
  • 9.4.2 Financial Performance
  • 9.4.3 Product Outlook
  • 9.4.4 Key Developments
• 9.5 HSBC
  • 9.5.1 Overview
  • 9.5.2 Financial Performance
  • 9.5.3 Product Outlook
  • 9.5.4 Key Developments
• 9.6 BNP Paribas
  • 9.6.1 Overview
  • 9.6.2 Financial Performance
  • 9.6.3 Product Outlook
  • 9.6.4 Key Developments
• 9.7 Mitsubishi UFJ Financial Group
  • 9.7.1 Overview
  • 9.7.2 Financial Performance
  • 9.7.3 Product Outlook
  • 9.7.4 Key Developments
• 9.8 Industrial & Commercial Bank of China (ICBC)
  • 9.8.1 Overview
  • 9.8.2 Financial Performance
  • 9.8.3 Product Outlook
  • 9.8.4 Key Developments
• 9.9 Bank of China
  • 9.9.1 Overview
  • 9.9.2 Financial Performance
  • 9.9.3 Product Outlook
  • 9.9.4 Key Developments
• 9.10 Agricultural Bank of China (ABC)
  • 9.10.1 Overview
  • 9.10.2 Financial Performance
  • 9.10.3 Product Outlook
  • 9.10.4 Key Developments

10 KEY DEVELOPMENTS

• 10.1 Product Launches/Developments
• 10.2 Mergers and Acquisitions
• 10.3 Business Expansions
• 10.4 Partnerships and Collaborations

11 Appendix

• 11.1 Related Research