Overview of the global retail banking market

According to the retail banking analysis, Technavio’s market research analyst predicts the global retail banking market to grow at a CAGR of around 6% by 2020.  Retail banking institutions require strong credit assessment capability, strong possessing capability, efficient documentation, skilled human resource, constant follow-up, and technological support to administer an extensive portfolio of retail credit products. These institutions provide credit to marginalized borrowers such as small and medium-scale enterprises that are unable to obtain funds from the other banking and financial institutions. With better monitoring capabilities and providing quicker access to credit, the retail banking market size is expected to increase during the forecast period.

Retail banking market trend

One of the banking trends gaining grounds in this market is the growing focus on customer connectivity. Several retail banking institutions are aiming to seek accuracy in their operating models which will help in data-driven decision making related to pricing and risk strategies. The retail banking institutions are modifying their business processes to reduce operational costs, which may increase customers' expectations in different products and services. Also, the vendors are developing various customer retention strategies and approaches to extend their customer base.

Retail banking market by geographical segmentation 

• Americas
• APAC
• EMEA

During 2015, EMEA dominated the market and accounted for around 44% of the total market share. The retail banks in this region are aiming to improve the business models by making use of digital channels, adjustments in the customer proposition in the MSME and affluent segments, and reshaping the branch networks. The growing focus towards implementing secured financing techniques will boost the growth of retail banking in this region.

Retail banking market: Competitive landscape and key vendors

At present, the banks are focusing on consumer protection which has propelled them to formulate proper pricing models for each product and service. It is important for retails banks to have a competitive, risk-based and value-added pricing to retain their customers. The retail banking sector has huge growth potential for innovations in the developing countries where the bank-led financial inclusion model exists. These developments will open up new sources of revenue and new channels of profit for retail banks during the forecast period.

Key vendors in the retail banking market  

• BNP Paribas
• Citigroup
• HSBC
• ICBC
• JPMorgan Chase

Retail banking market trends: Growing use of big data analytics

Upcoming trends such as the growing use of big data analytics are gaining popularity in the market as they provide a comprehensive analysis and useful insights about the customers. These analytical solutions perform predictive analysis, such as stochastic, simulation techniques, and what-if scenarios, that help the retail banks to evaluate different strategies and tactics and results in better-informed decision-making, leading to increased performance, reduced costs, better customer service, and profitability.

This report provides a number of factors contributing to the adoption, limitations, and opportunities of the retail banking market. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global retail banking market?
• What are the key market trends impacting the growth of the global retail banking market?
• What are the challenges to market growth?
• Who are the key vendors in the global retail banking market?
• What are the market opportunities and threats faced by the vendors in the global retail banking market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global retail banking market?

Technavio also offers customization on reports based on specific client requirement.

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