Retail Banking

Global Retail Banking Market to Reach US$2.4 Trillion by 2030

The global market for Retail Banking estimated at US$2.0 Trillion in the year 2024, is expected to reach US$2.4 Trillion by 2030, growing at a CAGR of 3.8% over the analysis period 2024-2030. Commercial Banks, one of the segments analyzed in the report, is expected to record a 4.0% CAGR and reach US$1.5 Trillion by the end of the analysis period. Growth in the Rural Banks segment is estimated at 3.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$528.1 Billion While China is Forecast to Grow at 7.2% CAGR

The Retail Banking market in the U.S. is estimated at US$528.1 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$515.5 Billion by the year 2030 trailing a CAGR of 7.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.2% and 2.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.0% CAGR.

Global Retail Banking Market - Key Trends and Drivers Summarized

How Is Retail Banking Adapting to Changing Consumer Expectations?

Retail banking has undergone a significant transformation in recent years, driven by evolving consumer preferences, digitalization, and increasing competition from fintech companies. Traditional banks are rethinking their strategies to offer more personalized, accessible, and seamless banking experiences. Mobile banking apps, contactless payment solutions, and AI-driven customer service are now essential features in the retail banking landscape. Moreover, the COVID-19 pandemic accelerated the shift toward digital banking, as consumers became more reliant on online financial services. This shift has forced banks to innovate rapidly while maintaining a strong focus on cybersecurity and regulatory compliance. The rise of open banking and APIs (Application Programming Interfaces) has also enabled more integrated and user-friendly financial ecosystems, allowing customers to manage their finances more efficiently.

Which Segments Are Driving Growth in the Retail Banking Sector?

The retail banking sector can be divided into several segments, including personal banking, small and medium-sized enterprise (SME) banking, wealth management, and digital banking services. Personal banking remains the core segment, offering products such as savings accounts, credit cards, mortgages, and personal loans. The SME banking segment has gained importance as banks develop tailored products and services to support small businesses, especially in the wake of economic disruptions caused by the pandemic. Wealth management services are also growing rapidly, driven by a rising affluent class seeking investment and financial planning solutions. Digital banking, which encompasses mobile banking apps, internet banking, and robo-advisors, is the fastest-growing segment. Neo-banks and digital-only banks have emerged as key players, appealing to tech-savvy consumers with streamlined services and lower fees. The increasing adoption of cashless transactions and digital wallets has further expanded the scope of retail banking services.

What Trends Are Shaping the Future of Retail Banking?

Several trends are reshaping the retail banking landscape. The most significant is the rise of artificial intelligence and machine learning, which are being used to automate processes, enhance fraud detection, and personalize customer experiences. AI-powered chatbots and virtual assistants are now commonplace, handling routine inquiries and freeing up human resources for more complex tasks. The adoption of blockchain technology is another trend, promising more secure and transparent financial transactions. Additionally, the implementation of open banking regulations in various regions has paved the way for greater financial transparency and consumer choice. Open banking allows third-party developers to create applications that interact with bank accounts, offering customers a more integrated and customized banking experience. The emphasis on sustainability and social responsibility is also influencing retail banking, with banks increasingly offering green loans and sustainable investment options. Moreover, the ongoing expansion of 5G networks is expected to enhance mobile banking capabilities, making services faster and more reliable.

What Factors Are Driving the Growth in the Retail Banking Market?

The growth in the retail banking market is driven by several factors, including digital transformation, increasing consumer demand for personalized services, and economic recovery efforts. One of the main drivers is the widespread adoption of mobile and digital banking, as consumers expect round-the-clock access to financial services. The proliferation of fintech startups has intensified competition, pushing traditional banks to innovate and improve their digital offerings. Rising consumer expectations for customized banking solutions have led to the development of AI-driven financial planning tools and data analytics platforms that offer tailored advice. Economic recovery efforts post-pandemic, including government stimulus programs and low-interest-rate environments, have boosted lending and spending, further driving retail banking growth. The increasing focus on financial inclusion has also played a role, with banks introducing products that cater to underbanked populations. Finally, regulatory changes that support open banking have encouraged collaboration between banks and tech companies, enabling the creation of more integrated and user-friendly financial ecosystems.

SCOPE OF STUDY:

The report analyzes the Retail Banking market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Bank Type (Commercial Banks, Rural Banks, Other Bank Types); Service (Savings & Checking Account Service, Bank Cards Service, Personal Loan Service, Mortgages Service, Home Loans Service, Other Services)

Geographic Regions/Countries:
World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia-Pacific; Australia; India; South Korea; Rest of Asia-Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UAE; Rest of Middle East; Africa.

Select Competitors (Total 36 Featured) -

• Agricultural Bank of China
• Backbase
• Bank of America
• Bank of China
• Barclays Bank Plc
• Boston Consulting Group, The
• China Construction Bank Corp.
• Citigroup, Inc.
• Deutsche Bank AG
• ebankIT Omnichannel Innovation SA

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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